Are Irish SMEs ‘missing a trick’ by not floating on the public market?

An IPO is increasingly accessible to smaller companies with a clear growth path, yet there have been no new listings on Euronext Dublin since 2023. Danielle Barron reports

The benefits of an IPO are significant. They include access to substantial capital for expansion, R&D, or acquisitions, as well as enhanced credibility and visibility, which can attract new customers, partners and talent.

Stock market flotations are not restricted to megacap tech firms. For ambitious and innovative growth-oriented companies at all stages of the life cycle, an initial public offering (IPO) can be a very useful tool for gaining much-needed capital.

Many Irish companies have successfully “gone public”, with notable examples including Flutter (formerly Paddy Power), Kingspan and the Kerry Group, gaining access to significant capital as a result.

According to Anna-Marie Turley, head of fintech, financial services and cybersecurity at Enterprise Ireland, stock market flotation, or IPO, can be a powerful tool for ambitious Irish companies seeking to raise significant capital, enhance their public profile and accelerate international growth.

“While IPOs are often associated with large tech firms, they are increasingly accessible to scaling small-to-medium-sized enterprises (SMEs) with strong fundamentals, a compelling growth story, and a clear path to profitability,” she says.

Enterprise Ireland has worked with several companies on the path to IPO, Turley notes. “We work closely with the Irish Stock Exchange (Euronext Dublin) and other stakeholders to ensure that Irish companies considering a public listing are well prepared and supported throughout the process.” Yet there have been no new listings on Euronext Dublin since 2023. 

While overall global activity has slowed, there were 539 stock-market flotations worldwide in the first six months of the year. None of these were in the Republic, however, despite new incentives being introduced in Budget 2025. 

Since the beginning of this year, companies going through initial public offerings receive tax relief of up to €1 million on related expenses, as part of government efforts to boost flotations. The relief is offered on IPOs on a recognised Stock Exchange in the State or the wider European Economic Area (EEA).

The Irish Stock Exchange, Euronext, published its pre-Budget 2026 submission back in May, calling for the Government to support more Irish companies to accelerate their growth by raising finance on equity capital markets by way of IPO.

Stephen Kane, head of corporate advisory, Goodbody.

“In recent times, Ireland may have been ‘missing a trick’ in not supporting more Irish enterprises to access private capital by way of public markets, evidenced by the small number of IPOs in Ireland over the past decade,” said Daryl Byrne, chief executive of Euronext Dublin, at the time.

That’s unfortunate, because the benefits of an IPO are significant. They include access to substantial capital for expansion, R&D, or acquisitions, as well as enhanced credibility and visibility, which can attract new customers, partners, and talent. It can also lead to improved governance and transparency, which can strengthen internal processes and investor confidence.

Stephen Kane, Goodbody’s head of corporate advisory, echoes these advantages of going public. 

“An IPO can provide access to significant pools of permanent capital and a supportive shareholder base, enabling companies to balance their capital structure, fund both organic and acquisitive growth, and potentially reduce debt,” he says. 

“An IPO also raises the company’s profile, enhancing brand visibility and credibility among all stakeholders. Publicly traded shares can be used as currency for acquisitions and as an incentive for employees through stock-based compensation. For early investors, an IPO offers a liquidity event and provides a potential exit strategy.” 

Importantly, an IPO can also align with medium-to long-term investors that typically look at performance over multi-year horizons.

“In contrast, private equity can sometimes operate on a shorter time frame, typically aiming for an exit within five to seven years,” Kane advises. This can introduce pressure to optimise for near-term returns, which may not always align with the company’s broader strategic goals or long-term brand development.

Yet Turley also warns that IPOs also come with significant responsibilities and costs. 

“These include increased regulatory compliance, reporting obligations, and scrutiny from shareholders and analysts, as well as ongoing costs related to legal, accounting, investor relations, and board governance,” she says. 

“There is also market pressure to deliver short-term results, which may conflict with long-term strategic goals.” Whether this compliance burden outweighs the benefits depends on the company’s size, sector, and growth trajectory. 

According to Turley, IPOs are typically more suitable for businesses with annual revenues of €20 million plus and strong and predictable cash flows. “A robust management team and governance structure and a clear competitive advantage and scalable business model are also musts,” she says.

Kane agrees that the main disadvantages of an IPO are the potential increased public scrutiny, high initial costs and increased financial transparency through public reporting requirements.

“For the right company that is well structured and prepared, the access to a permanent capital base can significantly outweigh the additional costs and compliance requirements,” he says. “In parallel, some Irish companies pursue dual track strategies, balancing IPO readiness with private placements or private equity alternatives to maintain flexibility,” he adds.

Kane notes that Euronext Dublin has now developed tiered exchanges to reduce this regulatory burden and make listings more accessible, particularly for growth-stage companies, with flexible pathways for companies at various stages of growth. 

“For high-growth SMEs, Euronext Growth typically suits companies with market caps of €10 million to €150 million, particularly in tech, medtech, and renewables,” Kane says. “It features lighter regulatory requirements and lower costs compared to the main market, making it more accessible for scaling businesses. Euronext Access provides an entry-level platform for earlier-stage companies, helping them build visibility and prepare for a future move up to larger markets. This graduated approach allows companies to align their IPO journey with their strategic goals.”