Irish firm Cairn Homes has unveiled plans for an initial public offering as soon as next week, the first for an Irish homebuilder in almost two decades.

Cairn Homes, set up last year and chaired by former KBC Bank Ireland boss John Reynolds, plans to sell at least €300 million to money managers before the shares start trading in London initially, according to sources cited by Bloomberg.

Credit Suisse Group and Goodbody Stockbrokers in Dublin are understood to be advising on the transaction. The company is also said to be considering a second listing in Dublin.

Spokesmen for Cairn Homes and Goodbody declined to comment on the plan.

Officials at Credit Suisse were not available for comment either.

Developers have been slow to accept the need for equity backing as the market rebounds, Minister for Finance Michael Noonan said recently.

Irish banks are not willing to provide more than 65 per cent of senior debt for viable “shovel ready” projects, according to Mr Noonan. To bridge the gap, developers must invest their own equity or find financing elsewhere.

Cairn Homes was founded by Scottish accountant Alan McIntosh and Michael Stanley, the company’s chief executive.

Mr McIntosh was was involved in setting up UK pub companies Punch Taverns and Spirit Group, according to the homebuilder’s web site.

The homebuilder is working on developments in Dublin, Galway and Meath, north of the capital.

Home prices, which fell by more than half during the crisis, rose 15.8 per cent in April from the same month last year, the Central Statistics Office said. Still, values remain 37.8 per cent below their 2007 peak.

McInerney Holdings was the last Irish homebuilder to float on the Irish Stock Exchange in 1997. It cancelled its listing in 2010.

Bloomberg