DUBLIN, Jan 7 (Reuters) - Kingspan dropped plans for an initial public offering of 25% of its data centre-focused ADVNSYS business on Wednesday, saying shareholder value would be maximised by
Kingspan Cancels IPO Plans for Data Centre Business
DUBLIN, Jan 7 (Reuters) - Kingspan dropped plans for an initial public offering of 25% of its data centre-focused ADVNSYS business on Wednesday, saying shareholder value would be maximised by retaining full ownership as demand for data storage booms.
The Irish building materials manufacturer began working in September on a potential Amsterdam listing of ADVNSYS, which produces bespoke critical infrastructure such as ventilation, with the IPO provisionally planned for the first quarter of 2026.
ADVNSYS' core profit has more than doubled over the last five years to 197 million euros ($230 million), thanks to an AI-fuelled expansion in data centre infrastructure, and Kingspan estimates it could hit around 300 million euros this year.
Kingspan said on Wednesday that, since it announced its plans to explore an IPO, there was now stronger momentum towards at least doubling ADVNSYS' core profit over the next four to five years.
Shares in Kingspan were 4.4% lower in early trading.
"We have been very pleased with investor appetite in respect of ADVNSYS and, in light of that interest, and given current momentum and outlook, our considered view is that retaining full ownership of this fast growing business is the optimum route to maximise value," CEO Gene Murtagh said in a statement.
($1 = 0.8559 euros)
(Reporting by Padraic Halpin in Dublin and Atharva Singh in Bengaluru; Editing by Joe Bavier)
