Irish construction firm to list on London exchange
An Irish construction company announced Wednesday it would list on the London Stock Exchange to raise funding to deliver new homes as strong demand returns to the Irish property sector.
The company will issue shares at one euro each (US$1.11) and is seeking to raise 350 to 400 million euros in the share placing, in addition to a 29-million-euro investment by the company’s founders.
Limited supply, particularly in Dublin, has driven up property prices after the sector collapsed and lending ceased during the 2008-2012 financial crisis.
Cairn Homes said it will focus on developing green and brownfield sites mainly in Dublin, but also in the cities of Cork and Galway, where demand is strongest.
Nationally house prices were 15.8 percent higher in April than a year ago, according to the Central Statistics Office. In Dublin, prices were 20.2 percent higher.
But at a national level, residential property prices are still 37.8 percent lower than their peak and pre-crash levels in 2007, the CSO said.
Ireland’s economy has rebounded strongly since the crash, growing at the fastest rate in Europe last year, and unemployment has fallen below 10 percent, but new mortgagelending remains slow.
John Reynolds, Cairn Homes chairman and former chief executive officer of KBC Bank Ireland, said strong growth in the Irish economy provided a strong backdrop for the IPO.
The company has acquired a number of sites, conditional on the IPO, with a total gross development value of 366 million euros. Construction is already underway at two sites in Dublin.