IRISH home builder Cairn Homes has announced plans to list on the London Stock Exchange, in a move that will raise as much as €400m.
The initial public offering means Cairn will be the first Irish construction firm to be join a stock market since McInerney Holdings listed on the Irish Stock Exchange in 1997.
The firm, which is building houses at two locations in Dublin and has sites around the country, said it will seek to raise between €350m and €400m with the listing.
Construction firms traditionally relied on bank loans to finance construction but Cairn will rely on equity financing, with the banks unwilling to provide significant debt since the property crash.
Cairn Homes chairman John Reynolds commented: “The Irish economic backdrop continues to improve underlined by the fact that Ireland has the joint highest GDP growth forecast in the European Union.
"These strong macro-economic conditions, together with a population that is forecast to increase to 5 million by 2031, will underpin a strong demand for homes over the coming years. We believe that this is a unique opportunity for our Company, our customers, potential investors and the sector.”
Company chief executive Michael Stanley added: “Cairn Homes’ IPO will give our company the platform for a new and sustainable approach to home building in Ireland. We are a well-capitalised business, governed by a strong independent Board, with an experienced management team committed to constructing the highest quality houses and apartments for our customers.”
Credit Suisse and Goodbody Stockbrokers are advising on the deal.