Irish homebuilder Glenveagh Properties on Friday said it was set to raise 550 million euros ($647.30 million) in Ireland’s second-largest initial public offering since the 2008 financial crisis amid a housing crisis in Europe’s fastest growing economy.
Glenveagh said it had raised 500 million euros and expected to raise another 50 million assuming the full exercise of an over-allotment option. Its shares will commence trading on the Dublin and London stock exchange this morning.
Glenveagh is just the second Irish housebuilder to float since the economy began to turn around, following Cairn Homes in 2015. Cairn’s share price has almost doubled since then as the value of its portfolio grew sharply.
While Ireland was left with a surplus of houses after values were cut in half following the property crash a decade ago, a recovery in the construction sector has badly lagged the general economy, causing house prices and rents to rise sharply again.