New homes for Dublin following Cairn IPO
dublin homebuilder Cairn Homes has raised over €400m in equity capital after its successful listing on the London Stock Exchange.
Cairn yesterday became the first Irish construction firm to be publicly listed since McInerney Holdings almost two decades ago.
The homebuilder is working on developments in Dublin, Galway and Meath, according to its website.
Home prices, which fell by more than half during the economic crisis, rose 15.8pc in April from the same month last year, the Central Statistics Office said. However, values remain 37.8pc below their 2007 peak.
The company issued 400m shares, priced at €1 apiece.
The company expects to realise approximately €384.9m of net proceeds from the offer, after deducting the underwriting costs and other fees and expenses of €15.1m.
It said that its market capitalisation was €429.7m.
"We are extremely grateful to our new shareholders for their strong support. Our successful IPO is a testament to the work of the Cairn team and the confidence of our investors," chief executive Michael Stanley said.
"The Cairn business model is unique in Ireland and will enable us to build quality homes in areas of particular need at a time of significant under-supply."
Shares jumped more than 6pc during trading among big investors yesterday. Small investors will only be able to buy and sell the shares on Monday.
Cairn Homes was set up last year and is chaired by former KBC Bank Ireland boss John Reynolds.
The company has begun work on a site at Parkside - off the Malahide Road in north Dublin - that is earmarked for 433 houses, and a smaller project of 20 homes, known as Albany on Killiney Hill in the south of the city.
It has secured another five sites and is negotiations to buy others, mostly around Dublin but it also has interests in Galway and Meath.