Insulation and building materials maker Kingspan Group said today it will no longer pursue an initial public offering of its ADVNSYS business and will continue to report the unit as a wholly-owned segment.
Shares in the company moved lower in Dublin trade today.
ADVNSYS provides bespoke critical infrastructure solutions mainly focused on data centres, ventilation and daylighting.
In a statement, Kingspan said it strongly believes in the future trajectory of ADVNSYS, including a target to at least double EBITDA over the next four to five years and, as such, places significant value on ADVNSYS and its ownership.
ADVNSYS' core profit has more than doubled over the last five years to €197m, thanks to an AI-fuelled expansion in data centre infrastructure, and Kingspan estimates it could hit around €300m this year.
There is even stronger momentum on this than when we announced our intention to explore an IPO in September 2025," the Co Cavan-based company said.
Kingspan said a wide range of high-quality global investors had demonstrated strong appetite to participate in the potential IPO.
But it added that it believes shareholder value will be maximised by allowing ADVNSYS to further capitalise on its rapidly growing and strong order book momentum, in particular its visibility on significant growth into 2026 and beyond as major additional manufacturing capacity comes on stream.
"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," Gene Murtagh, the chief executive of Kingspan, 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 said.
"We are excited about the future growth trajectory of ADVNSYS within the Kingspan Group," the CEO added.
