The current year has "started well" and the outlook for all its business divisions remains positive, McInerney Holdings said in its placing and open offer document, which has been circulated to shareholders. Further growth is anticipated and the benefits from the proceeds, around €9.3 million (£7.3 million), are expected to come through in 2000.

The 6.5 million new shares have already been provisionally placed with institutional investors. Existing shareholders have the right to subscribe for one new share at 149c for every four shares held. The group said there has been continued strong demand for first time house buyers and a reduction in demand from investors since the implementation of the Government initiatives. It also believes that the initiatives will result in additional land acquisition opportunities becoming available.