Irish shareholders in IPL Plastics have tendered for shares worth up to CAD$33.4m (€21.9m) in a buyback ahead of its Canadian listing later this month.
The company, formerly known as One51, announced in April that the listing plan would include a share buy-back of up to CAD$50m, which would give investors a clear exit route.
Irish investors face a dilution of their shareholding in the company from 57pc to around 45pc, while the company’s Canadian investors – Caisse de depot et placement de Quebec, and Fonds de Solidarite des travailleurs du Quebec – will see their stakes watered down by around 34pc from 43pc.
Under the buy-back arrangement, the original shareholders in the company, including several co-ops, have the option of selling their shares back to IPL at the time of the IPO or trading out within six months via a grey market in Dublin.
Underwriters insisted on structural lock-in for six months to ensure stability for the shareprice.
Investors can, of course, hold on to their stock after the six-month period.
According to the IPL Plastics documents, more than 2,085,678 Class B common shares (the equivalent of five shares at present) have been tendered under the buy-back option “representing a total redemption price of between CAD$28,156,653 and CAD$33,370,848”. This represents less than 5pc of shareholders.
Pricing details will be released in the week beginning June 18.
The updated prospectus showed that in the first quarter, revenue rose to CAD $148m from CAD$112.5m in the same period 2017. Adjusted earnings before interest and tax fell by 16.8pc to CAD$6.8m in the first quarter.
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