Davy Stockbrokers has placed an enterprise value of €879 million on investment group One51, a level that falls below the €1 billion mooted last month by chief executive Philip Lynch.
In a note to investors ahead of the start of grey market trading in One51 stock next month, Davy says its calculation implies an equity value of some €686 million on the business after the exclusion of €193 million in debt.
At the One51 agm last month, Mr Lynch suggested a valuation of at least €1 billion and said that sum excluded €200 million in new capital.
Davy's calculation equates with a valuation on the group's stock of €6.13 per share, before it raises €200 million through an issue of new stock at €5 per share. This "pre-money" valuation is greater than One51's own current calculation of €5.60 per share.
The price at which the shares will start trading on the grey market has yet to be determined. The introduction of the market will enable holders of One51 loan notes to convert their notes into tradeable stock. An issue of notes last year valued the company at about €300 million.
A high level of subscription from current shareholders means there is no offering to any new external investors. Investors include developer Bernard McNamara, former AIB chief Tom Mulcahy, former Bank of Ireland chief Mike Soden, C&C chief Maurice Pratt and Kingspan founder Eugene Murtagh.
Denis O'Brien and his associate Leslie Buckley are investors, as are Irish Nationwide chief Michael Fingleton, former Bord na gCon chairman and financier Paschal Taggart and auctioneer Ken McDonald.
Businesswoman Freda Hayes, former civil servant Padraig Ó hUiginn and former Esat Digifone chief Barry Maloney are also believed to be involved.
The Davy note says One51 has two divisions: One51 Operations, which has recycling, treatment and plastics interests; and TS Capital, a vehicle which holds and manages a portfolio of investments, including shares in NTR and Irish Continental Group.
Dated three days ago, the note says the value of TS Capital's quoted investment may alter for reasons linked to the companies themselves or markets generally.
"As at the time of writing this note, the various investments have a value of approximately €516 million," the note says.
