The chairman and chief executive of Rapid Technology, Mr Pat McDonagh - who has previously made a fortune from the flotation of CBT on the NASDAQ market in New York - will be worth a further £7 million when Rapid Technology goes public early next month. Rapid plans a listing on the Developing Companies Market in Dublin and the Alternative Investment Market in London.
According to a filing with the Stock Exchange in London, Rapid plans to raise up to £5 million through a share issue at 95p per share and will be valued at £25 million when the flotation is completed. The flotation is being handled in London by English Trust and Peel Hunt and in Dublin by Dolmen Securities.
Assuming the full £5 million worth of new shares are placed, then Mr McDonagh's stake in the new public company will be 28 per cent, worth £7 million at the placing price.
Other directors will also become overnight millionaires. Finance director Mr Roger Bannon will have 10.5 per cent of the company, worth £2.6 million; development director Mr James Barry will have 11 per cent, worth £3 million, while two non-executive directors, Mr Roger Dickinson and Mr John Caldwell, will have shares worth £1.4 million and £1.6 million respectively.
Rapid has been involved in an investor roadshow for the past two weeks ahead of the flotation. The £5 million raised will be used to expand the group's sales and marketing operations in the US and for new product development.
