Some 12 per cent of developing software companies are aiming for a stock market flotation in the next three to five years, according to Goodbody stockbrokers new Technology Review.

Because of the growing number of rapidly developing Irish computer and telecommunications companies with flotation ambitions, some change in the structure of the Irish equity market is expected.

The market may slowly shift away from the traditional companies towards newer technology companies which have the potential to outperform the index.

The continuing increase in scale and international exposure of Irish software companies indicates the potential for the development of a meaningful stock market sector, according to Goodbody.

The drive to get young Irish technology companies onto the equity markets has been started by the successful flotations on Nasdaq in the US of CBT, Iona, Trinity Biotech and Saville Systems. Rapid Technology Group's Dublin successful flotation on the DCM in Dublin and AIM in London last week and the flotation plans of Iona Technologies and BCO Technologies are in the current wave of the forward drive.

See also page 1, Business This Week 2