Esat Telecom may seek listing for shares in Dublin next year

ESAT Telecom is likely to take a listing on the Irish stock market in the first half of next year, the company's chief executive, Mr Denis O'Brien, has stated. Esat currently has listings on the Nasdaq and Easdaq markets.

On the proposed Dublin listing, Mr O'Brien told a conference in London yesterday: "Some of the rules don't suit us but I am more confident now of taking a listing than I was two weeks ago."

Esat's difficulty with a Dublin listing until now was that as an Irish company with most of its business in Ireland, stock exchange rules would normally require it to have a primary listing in Dublin. Mr O'Brien said, however, that the listing in Dublin would be secondary.

However, market sources said that a secondary listing may mean that ESAT may not qualify for inclusion in the ISEQ index.

Mr O'Brien contended that following the deregulation of the Irish telecommunications market this week, there was not enough room here for four or five big telecom companies. At most, three large companies will be operating in two years' time, he said. Telecom Eireann, Esat, Ocean, Cable and Wireless and Stentor are the five companies planning to service the large corporate market.

Mr O'Brien told the conference, organised by NCB Stockbrokers, that Esat earnings before interest, tax and appreciation next year would be "solidly positive" and that this earnings position had been achieved 15 months ahead of target.

Earlier at the conference, Telecom Eireann chief executive, Mr Alfie Kane, said that the group, which is expected to be floated on the stock market next June, will introduce a service in the UK next year.

Telecom began operating in Northern Ireland last Monday and Mr Kane said: "We expect to be a successful niche player." He added that the company was exploring opportunities in continental Europe, the US and the rest of the world but he declined to elaborate. Mr Kane also declined to comment on next year's public offering of Telecom shares but NCB head of equities, Mr John Conroy, suggested that Telecom might be valued at up to £4 billion by the time of the IPO.

The chief executive of Horizon Computer, Mr Samir Naji, said that it may float on the stock market next year. The company was due to float in Dublin and London in recent weeks but postponed the move because of the weakness in the stock market.

NCB has valued Horizon at £45 million to £50 million. The computer company has just completed a £7.6 million private share placing which has seen Mr Naji's stake fall from 83 per cent to about 65 per cent.