Monday 20 November 2017

Old-fashioned way of raising cash is in vogue

Behind the story

Mincon equipment was used in the rescue of 33 miners trapped in Chile in 2010
Mincon equipment was used in the rescue of 33 miners trapped in Chile in 2010
John Mulligan

John Mulligan

Companies may still be finding it tough to get the kind of expansion capital they want from the banks, but the stock market is proving to be a lifeline for successful firms that largely rely on foreign markets for their revenue.

Mincon is the latest firm to benefit from a listing, an old-fashioned way of raising money by selling shares in the business on the open market that is increasingly back in fashion.

Other Irish firms have also been tapping the markets. Only last week, London-based gaming software group GameAccount Network, headed by Dermot Smurfit Jnr, also floated in Dublin and London, raising €26m to fund expansion. The company's other shareholders include packaging tycoon Michael Smurfit, as well as Tony Smurfit and billionaire financier Dermot Desmond.

Also heading for the stock market is Dublin-based Globoforce. It's a cloud-based HR software services firm. It's hoping to raise up to $75m (€65m) in an initial public offering on the Nasdaq market in New York. That's likely to value the company at around €400m. It was founded in 1997 by Eric Mosley.

During the summer, Dublin-based video-game software firm Keywords Studios floated in London, valuing it at €70m.

The company localises, or tailors games for local markets, by translating dialogue for instance. Its clients include firms such as Microsoft and Electronic Arts.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business