Conduit float in Frankfurt should raise up to €60m

Conduit Europe, an information service provider based in Dublin, will raise €45-€60 million (£57.2-£76 million) through an initial public offering of shares on the Neuer Markt exchange in Frankfurt at the end of this month.

Conduit, which provides directory assistance services in the Republic, Austria and Switzerland, has also agreed a strategic alliance to provide directory assistance in the UK market with the Finnish telecoms group, Sonera Corporation.

Conduit managing director Mr Liam Young, said the IPO would fund rapid growth in the European marketplace.

He claimed Conduit had doubled its share of the directory assistance market in the Republic in a week to about 30 per cent. The firm competes with Eircom in the directory services provision market.

Mr Young said the UK market was particularly interesting for Conduit since it believed it would deregulate its directory assistance business early next year.

Conduit estimates it already has a 4 per cent market share in the UK through its directory assistance contract with mobile phone operator Orange.

Conduit's chairman, Mr Eddie Kerr, expects a positive outcome from the float as institutional investors have already expressed interest in the company.

He says the Neuer Markt was particularly suited to Conduit as was familiar with this type of information services company. Telegate, a company similar to Conduit based in Germany, is already listed.

As part of its UK alliance with Conduit, Sonera has taken a 12.5 per cent stake and Mr Heikki Jamsanen, senior vice president of Sonera, will join Conduit's board.

Under the terms of the alliance a new company, 118 Ltd, has been established by Conduit and Sonera. Conduit is a majority shareholder in this company.

Mr Kerr said the alliance endorsed Conduit's achievements. He said it would enable technology transfer and synergies between the companies.

Most of the public offering of some 3.5 million shares will be placed in Europe. Merrion Capital is managing the Irish institutional offer.

Following the placing of new shares, Mr Edward Kerr and Mr Young are expected to have a combined shareholding of some 41 per cent.

A share options scheme gives staff current holdings of around 10 per cent of the company. A share scheme introduced for senior management is worth an additional 5 per cent.

Mr Young expects the company to begin making profits by 2003. He said the group was positioning itself to supply services and information for third generation mobile phone networks.

Conduit, which operates the 11850 directory service in the Republic, employs about 650 people in Ireland, the UK and Austria.

Its turnover grew to €11.03 million for the year ended March 2000, up from €1.34 million in 1998.