Hostelworld raises €180m in IPO as shares begin trading in Dublin

Irish travel website, which owns hostels.com, is listed in Dublin and London

 

Irish travel website Hostelworld has raised €180 million from its Initial Public Offering (IPO) on both the Dublin and London stock markets.

The company, which also owns Hostels. com and HostelBookers.com, began trading today on the Irish Stock Exchange’s main securities market.

Its initial offer price was set at 185 pence a share (€2.55), valuing it at about €245 million.

Shares in the company, which will mainly trade in London, last week jumped to 198.5 pence where it stayed for most of the day. It closed at 198 pence.

In Dublin, the shares were flat at €2.73.

Hostelworld is part of Web Reservations International. Its founder Ray Nolan sold the business to Hellman and Friedman in 2009 for €202.5 million.

The company specialises in offering online booking services and maintains a database with over 12,600 hostels in 170 countries.

“Our IPO is a significant milestone in Hostelworld’s development and we welcome all new shareholders to the Group. Listing on the ISE offers us access to global investors and will facilitate our ambitious plans to grow and generate value for our shareholders,” Feargal Mooney, Hostelworld chief executive, said.

Irish Stock Exchange chief executive Deirdre Somers said: “We are delighted to welcome Hostelworld, an Irish-headquartered company operating globally in more than 170 countries, to the ISE’s Main Securities Market.

“It is great to see a company so connected with the technology and tourism sectors, where Ireland has such a strong track record, come to the market,” she added.