IPL Plastics, the company formerly known as One51, is to offer a share buyback scheme valued at €50m ahead of its planned flotation on the Toronto stock exchange later in the summer.

This is in an attempt to maximising liquidity for long-term investors including co-ops Dairygold, Kerry co-op and Glanbia, who face dilution in the value of their investment.

It is expected the flotation will take place in June, with an EGM taking place in the coming weeks. Shares in IPL Plastics (One51) are expected to convert to new shares in a Toronto-based holding company. Shareholders will swap five IPL shares for one new share.

Under the buyback offer, existing shareholders will then have the option to sell their shares back to IPL at the IPO price. Following the planned IPO, for six months, a grey market will continue in Ireland which will provide shareholders with the option to trade shares at a price which tracks the price of the Toronto-based company.

After six months, shares will be traded on the Canadian stock exchange. While the majority of co-op shareholders are expected to stay in, some may avail of the buyback offer.

The IPO will generate about €125m.