Boundary Capital, the private equity vehicle headed by financier Niall McFadden, made its stock market debut yesterday, raising €25.25 million to fund further development of the company. The shares closed 13 cent higher.
The group, which is already in talks regarding two acquisitions, placed 25.25 million shares at €1 each, which when combined with the shares held by management gave it an initial market value of €53 million.
At the end of yesterday's session, following what dealers described as "a decent first day's trading", its value had risen to about €60 million. The shares are listed on Dublin and London's secondary exchanges, IEX and AIM.
In the listing document, Boundary Capital's directors described the future growth prospects for the business as attractive, adding that one of the acquisitions it is currently considering is in the medical supplies sector, with a purchase price, subject to due diligence, of €100 million.
Boundary Capital said it was also in talks to secure a €20 million banking facility, which would act as a war chest to fund future acquisitions.
The company already has a portfolio of investments across a number of sectors, including business services group Veris, CJ Fallon, an educational publishing company and construction services group Siteserv.
Mr McFadden controls about half of the company through a total investment of €25 million, comprising a cash input of €1.35 million and his prior interests in the group's investments.
In a statement, Mr McFadden, who has taken on the role of chairman, welcomed the listing, saying it will allow shareholders to take advantage of the value created by the group's investment strategy.
Boundary Capital was advised by Davy Corporate Finance.
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