The Irish Stock Exchange is expecting one more company to list on the ISEQ before the end of the year, with a "strong pipeline" of potential initial public offerings (IPOs) lined up for 2005.

Stock exchange chief executive, Mr Tom Healy, said yesterday that he was hopeful of one new listing in the second half of 2004, based on discussions the exchange has held with corporate finance houses.

Mr Healy said he was not aware of the identity of any firm that might seek an IPO in the near future since formal approaches to the exchange have yet to be made.

It is thought, however, that likely candidates could include Jefferson Smurfit, which delisted after being taken private by Madison Dearborn in a €3.8 billion leveraged buyout in 2002. The company has since passed through a radical restructuring.

Another possibility could be infrastructure operator, NTR, which would add a new sector to the ISEQ's profile of companies.

NTR chief executive, Mr Jim Barry, scotched such suggestions earlier this year, however, indicating that a listing could be as far as three years away.

Mr Healy was speaking after the stock exchange launched its review of the first half of 2004, a period which saw both Eircom and C&C join the ISEQ.

The two listings together raised a total of €2.15 billion on the exchange. While a third listing would offer a further boost to the market, a total of three IPOs would still fall short of some earlier expectations. Mr Healy himself said in January that the exchange could welcome up to five new arrivals this year. He said yesterday that talks with corporate finance advisers pointed to a strong pipeline of listings, although few were at an advanced stage.

The stock exchange review shows that while the value of shares traded on the ISEQ fell slightly over the first half of the year, the volume of transactions was up by a quarter.

Mr Healy said the figures seemed to illustrate the return of private investors - most of whom trade on a small financial scale - to the market after a period of uncertainty. The review shows that while the value of shares traded on the exchange over the first half fell by 2 per cent to €37.5 billion, the daily average number of trades climbed by 24 per cent to 2,600.

Mr Healy believes both the value and volume of trades will rise over the coming year as more investors return to the market.