Cavan-based company said outlook for unit is even stronger than previously anticipated
The Cavan-headquartered group said in September that it was contemplating selling 25pc of the division in a flotation in Amsterdam this year.
“There is even stronger momentum on this than when we announced our intention to explore an IPO in September 2025,” it noted.
Shares in the company, whose chief executive is Gene Murtagh, were nearly 2.5pc lower in Dublin after the group confirmed that, despite strong interest in the proposed initial public offering (IPO), it has now decided to shelve the plan for its Advnsys unit.
“Whilst it is clear that a wide range of high-quality global investors demonstrated strong appetite to participate in a potential IPO, Kingspan believes that shareholder value will be maximised by allowing Advnsys to further capitalise on its rapidly growing and strong order book momentum, in particular our visibility on significant growth into 2026 and beyond as major additional manufacturing capacity comes on stream,” the company said in a statement.
It added: “As such, Kingspan will now not pursue an IPO and will continue to report Advnsys as a wholly owned and broadly distinct reporting segment.”
Kingspan said it “strongly believes” in the future trajectory of Advnsys, including a target to at least double its earnings before interest, tax, depreciation and amortisation (Ebitda) over the next four to five years.
It said it places significant value on Advnsys and its ownership. The plan to float the unit had come amid the growth in the use of artificial intelligence, which is accelerating global data centre investment.
Mr Murtagh said that given the group’s strong momentum, the company will hold a capital markets day in the United States later this year to provide further insights on Kingspan’s strategy, its competitive differentiation and its compounding growth potential.
Advnsys is expected to deliver Ebitda of about €300m this year, representing a 20pc compound annual growth rate since 2015. Ebitda at the unit is expected to have hit €230m in 2025.
“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 for our stakeholders,” he said.
“The process has been beneficial in highlighting Advnsys’ standing as a global leader in bespoke critical infrastructure solutions in its own right, to support structural growth in the data sector, and in complementing Kingspan solutions to mitigate climate impacts in energy intensive sectors,” he added.
The company said in a previous presentation to investors that $1.8tn (€1.5tn) will be invested in data centres in the next four years. That is about two-and-a-half times the total invested between 2022 and 2024.
Davy Stockbrokers said that given Kingspan was examining a potential IPO from a position of strength, the decision to retain full ownership has been taken as it is considered the best option for Kingspan and its shareholders.
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