Monday 23 September 2019

Fineos on course to raise €132m in latest Irish listing in Sydney

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Donal O’Donovan

Irish software company Fineos is on course to become Australia’s biggest stock market listing this year when it floats in Sydney on Thursday.

The initial public offer (IPO) is tipped to raise A$211m (€132m), valuing the business at around €410m.

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Investment bank Macquarie, the lead manager on the IPO which is  advising alongside Moelis, told clients yesterday that it has received bids for stock in enough volume to ensure the flotation succeeds, according to a report in the Australian Financial Review (AFR), citing details from a memo sent to market participants.

“Following completion of the first week of the Fineos IPO roadshow, a number of indications and orders have been received from institutional investors,” Macquarie said yesterday.

Fineos CEO and founder Michael Kelly will retain a majority stake. The business provides software services to the global insurance market. Although Dublin-headquartered, Australia and New Zealand make up its biggest market – accounting for €28m of the €54m of sales in 2018 according to the most recent Irish filings.

Fineos is the latest in a trickle of Irish, mainly technology companies, to list in Australia.

In 2016 tech company Oneview Healthcare was the first Irish company to float on the Australian Securities Exchange (ASX) – raising A$62.4m, followed by Kyckr, an Irish financial technology company that raised AU$5m.

A report earlier this year suggested Denis O’Brien’s Digicel was looking at raising equity down under.

Fineos is one of Ireland’s longest established tech firms with 539 staff around the world. It operates in the US, Canada, UK and Europe as well as in the Southern Hemisphere.

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