Trinity Biotech, the Irish-based manufacturer of diagnostic products which floated on the Nasdaq in 1992, has announced plans to take a secondary listing on the Irish Stock Exchange.
The Bray-based company said it would not issue share capital as part of the listing, which is expected to take place in the coming months. The listing is designed to broaden its investor base and attract further institutional support for the shares which the company believes are undervalued.
"By broadening our investor base we might be able to get a rating similar to our peers," said Trinity's chief financial officer, Mr Jonathan O'Connell.
The timing of the announcement comes after a turbulent time for many Irish technology companies listed on the Nasdaq. However, Mr O'Connell said that Trinity has been considering the Dublin listing for more than a year. He noted the company was quite different to those in the information technology sector and enjoyed nothing like the high and demanding multiples attaching to IT firms.
Trinity is currently trading on a multiple of 11 times earnings compared to an average price/earnings ratio of 17 to 20 in the health care sector generally.
Mr O'Connell said the company, which has raised around $20 million since it went public, did not need funds at the present time as it was generating strong cash-flow. However, Trinity had been very acquisitive - spending some $16.5 million on four acquisitions last year - and might raise funds to pay for possible further purchases. "We are always on the lookout for further acquisitions and depending on what comes up, we may revert to the market either here or in US. It gives us another funding option," he said.
Trinity Biotech has manufacturing bases in Bray, Co Wicklow, and in Jamestown, New York, and employs 220 people in the manufacture of products such as self-test kits to detect pregnancy, Hepatitis B and HIV. It markets more than 120 products through distributors in 75 countries and reported a 67 per cent rise in earnings per share and 111 per cent growth in net income to $2.5 million last year on a 38 per cent rise in revenue to $23.2 million.
The listing, which is being handled by Goodbody Stockbrokers, is expected to cost the company in the region of £125,000 (€158,700).
