Private equity firm Boundary Capital raises €25m on first day of trading

SHARES in Boundary Capital, the investment vehicle run by Niall McFadden, got off to a flyer on its first day of trading on the Irish stock market.

The company, which joined London’s junior market AIM as well the as the Irish exchange, began trading a €1 yesterday and shot up by as much as 17% to €1.17. They closed up 13% at 1.13 giving the company a value of €60 million.

The company raised €25m in the placing, which was heavily oversubscribed.

Boundary, which counts stakes in Veris, Siteserv, Prontaprint, CJ Fallon and a British golf club chain, plans to use the proceeds of the placing to invest in companies with “attractive cash-flow characteristics” and “strong management teams” in Britain, Europe and the US.

“We’re looking to build a balanced portfolio of investments and to work with the senior management of investee companies to develop those firms. Shareholders will now have a chance to benefit from the value created by our investment strategy from the initial stages of each investment.

“We expect to make a number of acquisitions within the next 12 months,” Mr McFadden, the firms executive chairman, said.

The company is granting 500,000 share option each to executive directors Martin Cole and Declan Cassidy. Non-executive directors Paddy Murphy and Michael Walsh are being granted 150,000 share options.

Boundary said the directors have agreed to wait 12 months before selling any more shares.