Published by Global Banking and Finance Review
Posted on January 7, 2026
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)
An Initial Public Offering (IPO) is the process through which a private company offers shares to the public for the first time, allowing it to raise capital from public investors.
Shareholder value refers to the financial worth that shareholders gain from owning shares in a company, typically measured by stock price appreciation and dividends.
Core profit is the profit a company makes from its primary business operations, excluding any income from non-operational activities or one-time events.
Data centre infrastructure encompasses the physical and virtual resources that support the operation of data centres, including servers, storage systems, networking equipment, and cooling systems.
AI-fuelled expansion refers to the growth of a business driven by the implementation of artificial intelligence technologies, enhancing efficiency, decision-making, and operational capabilities.
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