Hostel company's shares up on first day
Published 03/11/2015 | 02:30
Shares in online hostel booking company Hostelworld closed up half of one percent in London yesterday - at 202.75p - on their first day of unconditional trading.
The company - founded by Ray Nolan - had risen above its IPO price of 185p in conditional trading last week.
It has now officially raised €180m and has also begun trading on the Irish Stock Exchange's Main Securities Market.
Chief executive Feargal Mooney said the IPO was "a significant milestone in Hostelworld's development and we welcome all new shareholders to the group.
"Listing on the ISE offers us access to global investors and will facilitate our ambitious plans to grow and generate value for our shareholders," Mr Mooney said.
It's the third new company on the Irish Stock Exchange this year after Malin and Applegreen.
Paddy Power chief executive Andy McCue and former Ryanair deputy chief executive Michael Cawley have joined Hostelworld's board as it seeks to tailor its advertising to a wider audience.
"One of the things that we're focused on is increasing the overall awareness of both the hostel product and experience and the Hostelworld brand," Mr Mooney told the 'Sunday Independent' last week.
"Historically, in terms of our marketing investment, we've focused on search-engine marketing, we haven't really invested in brand building to any extent.
"Clearly, if you look at Paddy Power and Ryanair, they've done great jobs on the brand marketing side of things and that'll certainly feed into it," Mr Mooney added.