IPL Plastics Considering IPO on Toronto Exchange

An Ireland-based injection molder that recently expanded into North America is considering an initial public offering of stock on Toronto's stock exchange.

IPL Plastics plc, formerly called One51 plc, said in a recent financial report that it is pondering an "optimal listing structure" as it considers a listing on the TSX exchange during 2018, subject to stock market conditions.

A recent news report in The Irish Times indicated the IPO could come as early as the middle of 2018. The newspaper also reported that IPL has hired three Canadian investment banks — BMO Capital Markets, CIBC and Royal Bank of Canada — to help it prepare for the listing. A subsequent report indicated IPL Plastic plans to raise C$200 million (US$155.2). Reportedly, the company had been considering a dual listing on the Toronto and Irish stock exchanges. IPL officials did not respond to requests for confirmation of the reports.

One51 entered the North American market in 2015 when it bought a majority stake in IPL Inc. of St. Damien, Quebec. A year later it bought Encore Industries Inc. of Sandusky, Ohio. Last year it further expanded its North American footprint by acquiring Macro Plastics Inc. of Fairfield, Calif. Last year One51 shed most of its environment-related investments to focus on plastics. On Feb. 28, it changed its name to IPL Plastics.

IPL Plastics recently reported its first annual financial results. Profits from continuing operations rose 9.3 percent to 17.6 million euros (US$21.8 million). Sales jumped 36.2 percent to 474.4 million euros (US$588.3 million).

The company's IPL Inc. business unit recorded sales of 293.7 million euros (US$364.2 million) for the year ended Dec. 31, up 56 percent from 2016. The IPL Inc. unit accounted for 62 percent of total sales. The Macro business unit's sales for the six month period that One51 owned it were 47.5 million euros (US$58.9 million). The OPG business unit representing operations in Ireland, the United Kingdom and China, saw sales fall 10 percent to 114.1 million euros (US$141.5 million).

IPL Plastics' main product lines are bulk rigid plastic containers and wheeled bins, rigid plastic consumer packaging and returnable plastic bins and totes. In total it manages 14 manufacturing plants on three continents.