Construction services company Siteserv raised almost €10.5 million yesterday from its flotation on Dublin's IEX market and the Alternative Investment Market (AIM) in London.

The offering was heavily oversubscribed, and Siteserv's share price jumped 36 per cent from its placing price of €0.55 to close its first day of trading at €0.75. The company's market capitalisation was approximately €51 million.

The Leinster-based company, which provides fencing and scaffolding to major building projects, was founded in 2004 by chief executive Brian Harvey.

Siteserv also received backing from highly-regarded investor Niall McFadden of Boundary Capital, which is thought to have boosted investor sentiment.

Siteserv's main unit is Donohue Scaffolding, founded in 1970, which was acquired by the group earlier this year. Siteserv also owns Rent-a-Fence, which provides temporary fencing and barriers to the construction and event management sector.

Commenting on yesterday's listing, Mr Harvey said: "The flotation will give us access to the capital markets to support Siteserv's development strategy."

Siteserv's objective is to develop into a "broadly based site services group", he said, and to expand its presence in Ireland before penetrating the UK market.

According to Goodbody analyst Philip O'Sullivan, health and safety regulations are driving demand for increased scaffolding and fencing on building sites. Siteserv was perfectly positioned to benefit from this, Mr O'Sullivan said.