Shares in the auctioneering firm Sherry FitzGerald rose by 18 per cent in their first day of trading on the Irish and London Stock Exchanges yesterday.
The company listed on the Developing Companies Market (DCM) in Dublin at a price of #1.99 (£1.57) but rose to a high of #2.35 before closing at #2.30, a gain of 31 cents on the day. It also took a listing on London's Alternative Investment Market (AIM).
"It's had a very successful debut," said one trader. "It's a good company which offers exposure to booming house prices." Prior to the listing, Sherry FitzGerald placed ordinary shares at #1.99 with more than a dozen institutions in Dublin and London - around 75 per cent were Irish institutions with the remainder in Britain - and with private investors.
More than 60 per cent of the company's staff also subscribed for shares at this price, leaving them with a gain of more than 15 per cent after the first day's trading. This means that more than 100 of the company's staff are now shareholders and the firm hopes this will expand further following the introduction of a Save As You Earn scheme.
"The success of the placing is a clear endorsement of our development strategy which is based on research into future demographic changes in the Irish population," chief executive Mr Mark FitzGerald said.
Mr FitzGerald, who holds more than 12 per cent of the company, saw the value of his stake rise by some £370,000 to £2.8 million on paper.
He said the company would use the money raised through the placing and listing - thought to be in the region of £2.5 million after expenses and loans are accounted for - to continue its expansion, including the development of a major national brand.
The company has plans to open further residential branches in Cork and Limerick. It has also established two franchised offices in Shannon and Ennis and has plans to announce another 10 throughout the State in the coming months. It aims to have 40 estate agents operating on franchise throughout the state in next five years.
