Power Leisure, the Paddy Power betting company, has completed the placing of shares valuing the group at €113 million (£89 million).

The placing was a prelude to a listing of the shares on the Irish and London stock exchanges. Dealing in the shares is expected to begin next Thursday.

The shares were placed at €2.40 each with Irish and British institutional investors, at the lower end of the estimated range of €2.30 and €2.85. The price, said finance director Mr Peter O'Grady Walshe, reflected supply and demand and the present market conditions. "The flotation will enable us to take advantage of the opportunities that we expect to become available, particularly in the unrestricted online betting market, which is similar to the Irish market in which, over 12 years, we have become the market leader," Mr Stewart Kenny, chief executive said.

"This combined with a very strong brand, Paddy Power, should enable us to make further significant inroads into a rapidly expanding online and interactive sector."

The directors have benefited directly from the placing. Most of the proceeds go to them. The company received just €2.7 million. Mr Kenny sold 20 per cent of his shareholding for some €2.3 million. He is left with an 8 per cent shareholding with a value of about €9.3 million. He also has options with a value of €900,000. Power said the reasons for the placing were to provide existing shareholders with the opportunity to realise some of their investment, to provide greater access to capital markets and to retain and attract staff.