Trinity considers listing on secondary markets

 

Dublin-based Trinity Venture Capital is considering listing on secondary stock markets in Dublin and London.

It is understood that the company has engaged Davy to advise it on the move, and is considering floating on the IEX in Dublin and the Alternative Investment Market in London.

The move is designed at raising funds to expand its investment activities. Sources say the company could raise up to €50 million from the move.

An investor roadshow is believed to be under way, and the listings are expected to happen by the end of the summer.

When contacted, a spokeswoman for the group said: "Trinity Venture Capital is currently in discussions with institutional investors reviewing the many options available to them to raise new capital to grow their existing portfolio of companies over the next number of years."

The listed company manages Trinity's portfolio of investments. These include: Norkom, a listed financial software company worth €166 million; Havok, a maker of games software and special effects for films; Aepona, which supplies network solutions to the telecoms industry; and CR2, a banking software provider.

A decision by Trinity to float would follow a similar move by Boundary Capital, a Dublin-based investment group headed by financier Niall McFadden. Boundary listed on the IEX and AIM on May 15th. Its shares, which listed at €1 each, rose sharply in the first few days of trading but have since fallen back to €1.09.

Trinity is one of Ireland's biggest venture capital groups. Founded in September 1997, it is led by chairman Shane Reihill and chief executive John Tracey.

It has raised €163 million to date for two funds that have invested primarily in early-stage technology companies in Ireland and the UK.

Trinity had two high-profile exits from investee companies in 2006 - Similarity Systems, in which it owned about 27 per cent, was sold for €45.4 million, while software group Steeltrace was bought for $20 million by US firm Compuware.

It is understood that Trinity has decided to refocus its strategy and move into the private equity space.

This would see it participate in larger transactions, including buy-outs, buy-ins, restructurings and public-to-private deals.

Mr Reihill is a former joint chief executive of fuel importers and distributors Tedcastle Holdings, which he left in 2001. He has also worked for Dillon Read Investment Bank in New York. He is currently chairman of Norkom, which this week announced a 38 per cent increase in its revenues to €25 million.

Mr Tracey is an engineer and initially worked in the semiconductor industry before joining Deloitte & Touche as a management consultant.

In 1989 he moved into venture capital, and spent eight years with ICC Venture Capital, which is now owned by Bank of Scotland. He has led Trinity since its inception.