Almost 40 per cent of Irish software companies are considering a stock market flotation over the next five years, with New York's Nasdaq being the most popular choice of exchange, according to a survey to be published this week.

The Irish Software Association's annual business survey, which polls 120 firms, suggests that despite the recent fall in information technology (IT) stocks on the Nasdaq, there remains a perception that investors on that exchange understands the hightech sector better. "The fact that so many Irish companies are considering a stock market quotation reflects the growing maturity of the industry," said the chairperson of the Irish Software Association, Ms Mary Cryan.