Shares in the Irish clinical research group ICON soared 42 per cent on their first day's trading on the NASDAQ market in New York and made the firm's founders even wealthier than expected.
Dr Ronan Lambe and Dr John Climax sold 296,800 shares each into the flotation at $18 and will each realise $5.3 million (£3.8 million).
The shares were trading at $25 1/2 which values the combined stake of around 52 per cent which Dr Lambe and Dr Climax have retained in Icon at £92 million.
The flotation will also be a windfall for the state development agency Forbairt whose 637,040 shares in Icon will be worth $16.3 million (£11.6 million) at the $25 1/2 price in the market.
Strong demand for the shares allowed ICON to float on NASDAQ at $18 per share, compared to the indicated price of $14-16 when the company announced its plans for a public offering of its shares last month.
The rise in the share price means that ICON has a market capitalisation of $272 million (£193 million) at a price of $25 1/2, compared to the $192 million (£136 million) at the $18 a share flotation price.
A total of 3.5 million ICON shares were sold in the IPO - 2.8 million by the company and 700,000 by selling shareholders who include Dr Lambe and Dr Climax. However, given the level of over-subscription to the IPO and the performance of the shares on the market yesterday, it seems certain that underwriters Goldman Sachs, William Blair and Merrill Lynch will exercise an option to acquire a further 525,000 shares.
The successful NASDAQ flotation of ICON follows previous successful flotations of Irish companies. Trintech seen next in line to tap the US stock market.
