Take a look at the Irish stock market and what do you see? A market heavily distorted by four large companies which make up almost 40 per cent of it and one where almost 70 per cent of the value of the market comes from the top 10 companies.
On a sectoral basis, the market is heavily overweight in financial shares, with many sectors - such as retailing, drinks and technology - notable by their absence.
Bar an unlikely decision by the Dunne, Roche or Musgrave families, the Irish market will remain short of a major retail presence.
But in the other absent sectors, there does seem to be some possibility of a presence being developed that could tap the investment interest which seems to exist.
There is a growing feeling that, given the current relationship between Allied Domecq and Guinness, the sale of the Guinness stake in Cantrell & Cochrane and the subsequent flotation of C&C is more and more likely.
But it may be the technology sector which sees a wider development of public companies, with Goodbody Stockbrokers suggesting this week that nine indigenous technology companies will float on the Irish market or Nasdaq over the next two years.
To those outside the sector, the companies involved may not be household names, but all have built up strong niche businesses servicing high-technology industries, and Goodbody believes that there is a strong possibility of a viable technology sector being developed on the Irish market.
So far, Irish high-technology companies have opted for the Nasdaq route, believing there is a higher level of interest among US investors in high-tech companies. Certainly, the sort of earnings multiples that high-tech companies are floated at on Nasdaq make many Irish fund managers squirm, but Goodbody believes that Nasdaq has its negatives as well as its attractions. It believes that, with more and more venture capital available for Irish high-tech companies and with a much lower company failure rate, the Irish sector will become increasingly attractive for Irish investors.
For the high-tech companies themselves, going public in Dublin would mean that the shares would be less prone to the sharp rises and falls that the momentum investors who dominate on Nasdaq can inflict on share prices. An Irish listing would produce a more long-term shareholder base: that seems to be the message. At the very least, it would seem that companies which do opt for Nasdaq will probably look for a dual listing with the Irish market.
This week saw the arrival of two more companies on the market, with Galen adding a Dublin listing to its highly successful London quote. Providence, demerged from Arcon, also listed on the ESM and was well-supported.
Imminent departures from the market, it would seem, are Woodchester and New Ireland, with the French majority shareholders of both looking for buyers. The Woodchester sale has been in the pipeline for some months and a deal should emerge soon.
New Ireland, however, may take a bit longer with AXA only recently having put the Irish life company on the block. Any one of 10 Irish-based financials are seen as potential bidders, but the likely price tag of well over £170 million might put some off.
