Limerick-based aviation leasing company Genesis Lease raised $640.8 million (€487.36 million) in its initial public offering on the New York stock exchange yesterday in a flotation that values the start-up business at $720 million.

The company's only staff are its chief executive Jim McMahon and chief financial officer Alan Jenkins, who were heavily incentivised to execute the transaction.

Incorporated last July in Bermuda but resident for tax purposes in Ireland, Genesis was set up "at the direction" of GE Commercial Aviation Services (Gecas), an affiliate of the US conglomerate GE, to buy and lease commercial jet aircraft and other aviation assets.

The company will use the flotation proceeds to buy a fleet of 41 jets from Gecas, which will continue to maintain, market, insure and collect rents on the aircraft.

An underwriter of the transaction said that an offering by Genesis of almost 27.9 million American Depositary Shares (ADS) - representing one common share - sold for $23 per share. This offering of 89 per cent of the company's share capital was priced at the top end of the $21-$23 range mooted in advance of the sale.

The GE group has agreed to buy the remaining 11 per cent of Genesis shares at the initial public offering price. The company will pay a quarterly cash dividend of 47 US cents per share and plans a "larger first dividend" for the period from the initial public offering until March.

The company's flotation prospectus made it clear that the low rate of corporate tax in Ireland was a big factor in the decision to take out tax residency here.

"We expect that our effective tax rate will be lower than our predecessor's as a result of our tax residency in Ireland," it said.

(Additional reporting: Reuters)