Lower costs and lighter regulation are among the reasons that a growing number of Irish companies are opting to list on AIM, London's junior market, rather than at home.
The Alternative Investment Market, one of the world's fastest-growing stock markets, had a bumper year in 2004, raising more than £3 billion sterling (€4.36 billion) for companies. The niche London market, which is part of the London Stock Exchange, includes among its members Domino's Pizza, Tottenham Hotspur Football Club and a growing number of small Irish firms.
Attracted by the access it offers to a large and sophisticated pool of British investors and its focus on smaller companies, young firms are bypassing the Irish Stock Exchange in favour of the London market.
With many Irish investors not interested in companies with a market capitalisation of less than €250 million, smaller firms are keen to tap into the large British retail investment community that prefers to invest close to home.
To date, 17 Irish firms have chosen AIM as their route to the stock market, including seven this year alone. The steady trickle of Irish companies opting to debut in London comes from all parts of the country and covers a wide range of sectors.
British-registered, but Cork-based drug research firm EiRx Therapeutics set the ball rolling when it became the first Irish company to take a listing on AIM this year, floating in January.
Those following its example included CNG, the Kenmare-based travel technology specialist, which raised nearly €34 million when it floated in May. Smart Telecom raised €15 million when it took a listing in September, while Circle Oil, the fledgling Limerick-based oil explorer headed by former Ivernia West chief executive Mr David Hough, made its debut in October.
The following month Wexford-based medical devices group Clearstream Technologies took the plunge, followed by Belfast-based Andor Technology, a digital camera firm, in early December.
These firms join established AIM companies such as pharmaceutical group Alltracel and information technology services group Fayrewood, which is controlled by entrepreneur Mr Pierce Casey.
Other Irish companies on AIM include the five exploration firms run by Dr John Teeling - African Diamonds, African Gold, Minco, Pan Andean Resources and Petrel on AIM. But perhaps the biggest blow to the Irish Stock Exchange came with the decision by house builder Abbey to depart the full list in favour of AIM in November.
Although it also took a listing on the Irish Developing Companies Market (DCM), this continues to languish with just two other listed firms - recruitment group CPL Resources and e-learning company ThirdForce.
The Irish Stock Exchange has been examining the prospects of launching a new market to cater for smaller Irish firms, but any move would not come until the middle of next year in tandem with new EU legislation.
Meanwhile, AIM's success along with its decision to maintain its light regulation under the incoming directive will keep the pressure on the Irish stock market.
