Dublin-based plastics company, IPL Plastics, has released an indicative price range of C$13.50-C$16.00 (€9-€10.60) a share for its planned initial public offering in Toronto next month.
The figures were released this morning as part of the launch of a share buyback offer worth $50m Canadian dollars (€33.2m), which enables some 2000 Irish investors to exit at the same valuation as the stock market launch price.
However, as IPL’s chief executive, Alan Walsh, confirmed last week at the group’s annual general meeting, few investors have indicated any appetite for this option, preferring to cling on and await the anticipated gains from this latest renewal phase.
Over the past decade the company has swung from peaks to troughs, and at one point threatened to buckle under the weight of its debts as its shares, which trade in a grey market in Dublin, plunged to a low of 15c.
The long-awaited IPO marks a watershed moment for the former sprawling buyout firm once known as One51.
Under the terms of the float, Irish investors will receive one common B class share for every five ordinary shares held.
The valuation of these ordinary shares has been set at C$2.70-C$3.20 (€1.8-€2.1).
If the final offer price falls below the floor local investors will have their buyback agreements terminated.
The IPO valuation is understood to be weaker than IPL, which is controlled by two major Canadian pension funds, targeted a month ago amid a share price slump in the sector.
As this newspaper revealed on the weekend, the recent weak performance from IPL’s peers, London-listed RPC and US-listed Berry, has prompted a downward revision to its IPO range.
IPL is expected to debut on Toronto’s stock exchange in the second half of June. Irish investors, largely made up of co-ops, dairy farmers and high net worth individuals, are restricted from trading their shares in Canada for 6 months.