1. Why is it listing?

The company wants to provide liquidity to its existing shareholders. As part of the listing, it is expected to raise an additional C$200m (€129m) to allow it grow. As part of the IPO (initial public offering) process, IPL is looking to establish a new Canadian holding company called IPL Inc.

2. Why is it listing in Canada and not Dublin?

Publicly quoted plastics companies trade at higher multiples in Canada than in Europe so existing shareholders should get a better price for their IPL shares.

3. What will happen to my existing IPL shares?

The company is proposing to swap shares in IPL plc for what are known as “B Common” shares in IPL Inc in a five-for-one deal. In other words, for every 5,000 shares held in the old IPL plc (One51), shareholders will get 1,000 B Common shares in the new IPL Inc. Six months after the IPO these B Common shares will convert to ordinary Common shares at which time they can be traded on the Toronto Exchange.

4. So I can’t trade my shares for six months?

You can – you just can’t trade them on the Toronto Exchange for that period. IPL is proposing a share buy-back offer which means that if a shareholder wants to sell shares at the IPO, the company will buy them at the IPO price. The company is also establishing a new grey market for the shares for that six-month period which will operate just like the existing grey market and is expected to trade at or around the Toronto share price.

5. Why is there a need to do this?

In Canadian IPOs the normal practice is for existing shareholders to be locked in for six months to allow for orderly trading. This reduces the likelihood of existing shareholders all selling at once. This could spook potential new investors and drive down the IPO price. This mechanism allays those fears.

6. So will a lot of shareholders sell up at the IPO?

IPOs tend to be priced at a discount, typically 10-20pc, to drive trading so most existing investors are expected to hang on at least in the short to medium term.

7. What will be the IPO price?

A lot will depend on how the markets are doing at that time. Before the IPO, the company will advise shareholders of the likely price range.

8. Are there any tax consequences for existing shareholders?

No, IPL has advised shareholders that the structures it has put in place mean there are no tax consequences for existing shareholders.

9. Will the IPO definitely happen?

Planned IPOs are never certain. Markets may implode or other external economic events may not suit.

10. What are the next steps?

Shareholders have been sent two proxy forms, one purple, one green. Shareholders must approve a new “Scheme of Arrangement” (SOA) which allows for the setting up of IPL Inc. If shareholders want the IPO to go ahead, these both need to be returned to allow the SOA go ahead. Without the SOA, there can be no IPO.