Irish housebuilder Cairn Homes raised over €400 million in new equity capital in its debut on the London Stock Exchange (LSE).

The company placed 400,000,000 ordinary shares at €1 per share.

Cairn is the first Irish homebuilder to float on the stock market since McInerney Holdings in 1997.

The group said that on admission to the LSE, the total market capitalisation of the company will be €429.7 million. Cairn said it expects to raise approximately €384.9 million of net proceeds from the offer, after deducting fees.

Cairn Homes was set up last year and is chaired by former KBC Bank Ireland boss John Reynolds. It was founded by Scottish accountant Alan McIntosh and Michael Stanley, the company's chief executive.

The company also announced on Wednesday a subscription for ordinary shares by members of the board of directors of the firm. Earlier this month, the groupy confirmed an investment of approximately €29 million in equity and cash by the company’s founders.

“This is an important day for the Irish homebuilding industry. It has been two decades since the last Irish homebuilding company floated. The successful initial public offering, raising in excess of €400 million of new equity capital, is a decisive step for Cairn Homes as we take a new and sustainable approach to building high quality new houses and apartments for our customers,” said Mr McIntosh.

The homebuilder said earlier this month it is currently working on a number of developments in Dublin, Galway , Cork and Co Meath.