Updated 16.45
THE FIRST IRISH housing developer to go public in nearly two decades gained about €20 million in value on its first day of trade.
Cairn Homes raised €400 million in a share sale ahead of its launch on the London Stock Exchange.
The home builder, which was set up last year by builder Michael Stanley and financier Alan McIntosh, had a total value of just under €430 million following the share offer after further investments from its founders and their families.
McIntosh, the company’s executive director, said it was an “important day for the Irish home-building industry”. Cairn Homes has already started construction projections in Dublin, Galway and Cork.
The successful initial public offering, raising in excess of €400 million of new equity capital, is a decisive step for Cairn Homes as we take a new and sustainable approach to building high quality new houses and apartments for our customers,” he said.
It gained another 5% on conditional trade today, when a limited number of shares can be bought and sold, adding another €20 million to its value. The company will be on the open market from Monday.
‘Unique in Ireland’
The last Irish house-builder to list on the stock market was McInerney Holdings, which went public in late 1996.
The company was de-listed in 2010 after being put into examinership.
Cairn has said it will focus building on urban areas – including Dublin and its commuter counties – where its management expected economic trends to support demand for new houses.
Despite house prices across the country rising 15.8% over the past year, according to the latest CSO figures, there remains a chronic under-supply of new properties coming onto the market.
That problem has been most acute in Dublin, where prices are up 20.2% for the 12 months to April.
Stanley, Cairn’s CEO, said the company’s business model was “unique in Ireland” and that would enable it to “build quality homes in areas of particular need at a time of significant under-supply.”
First published 11.19am
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