Iona's Horn heads tech stock market's new advisory group

Iona chairman Mr Chris Horn is to head up a new advisory group set up in conjunction with the launch of the Irish Stock Exchange's new technology market.

The ITEQ market, geared towards the needs of technology firms, began trading yesterday with six companies taking a dual listing on it.

The six - Horizon, Icon, Iona, ITG, Riverdeep and Trinity Biotech - have full listings on the official list of the Irish Stock Exchange.

The special advisory group will represent the interests of the technology sector and according to Mr Horn, the ITEQ will give a boost to young entrepreneurs working in the technology sector in Ireland. "It will provide a real choice to people who want to combine the benefits of a listing on an international technology exchange with the advantages of maintaining a strong profile in their domestic market."

The exchange will also be setting up a new ITEQ index. It is hoping to attract Irish companies which are considering initial public offerings in the short to medium term, in an effort to put a halt to the number of Irish companies bypassing Dublin and opting for a listing in London, on the Frankfurt Neuer Markt or the Nasdaq in New York.

According to Mr Tom Healy, chief executive of the Irish Stock Exchange, the ITEQ combines the benefits of a home market listing for Irish tech companies, the user friendliness of a dual listing in Ireland and one of the major international tech markets. "I believe we have created a market that serves the needs of both investor and Irish tech companies," he said.

The admission rules are less onerous for the new market than a full listing on the official exchange but are complementary to the rules on the other tech markets. Admission to the ITEQ can be achieved in the same time and using broadly the same admission documents as the other markets.

Interestingly, ITEQ will allow the trading of ADRs or American Depository Receipts from both Europe and the US. Unlike trading in shares, trading in ADRs is exempt from stamp duty.

Following a positive reception from the corporate finance industry, the exchange is likely to attract another few companies before the end of this year and market sources say that up to 12 or 15 companies ought to be listed by the end of 2001, primarily in the software and Internet sectors.

The current variation in market capitalisation is enormous from Iona's approximate €1.6 billion (£1.25 billion) to Icon's €167 million (£131 million). The new companies are expected to be in the €100 million to €500 million range.