A NEW Irish telecommunications company is aiming to raise £3.5 million on the London Alternative Investment Market (AIM).

Stentor, which was granted a licence by the Department of Transport, Energy and Communications in 1995, will be floated on the British market at the end of the month and expects to start trading in Ireland in July.

Stentor intends to join Esat Telecom, Cable & Wireless and TCL in offering Irish businesses a long distance phone service competition with Telecom Eireann.

The company, which will initially employ 22 people, was established by Mr Patrick Cruise O'Brien, son of Dr Conor Cruise O'Brien. It will link with international telecommunications giant AT&T, which will provide its technology and manage its complete calls network, but will not have an equity stake in Stentor.

Targeting businesses with average monthly phone bills of around £4,900, Mr Cruise O'Brien says it has received firm commitments from a number of companies and expects to have up to 50 customers on its books by the year's end.

Stentor will provide international calls through a multi carrier platform in London. Its services will also include data transmission, call and video conferencing and international toll free services and phone cards.

Prices will be "in line" and "competitive" with those already offered within the Republic, according to Mr Cruise O'Brien, who insists that the business will not be price based.

Mr Cruise O'Brien, the group's executive deputy chairman, is a director of management and business consultants at Irish International Partners.

Dublin based solicitor, Mr Daniel O'Neill, is chairman of the group while former IBM finance director, Mr Tom Dunphy will oversee the financial functions of the business. Telecommunications consultant Mr Jonathon Friedal has been appointed chief executive.

The company, which is being brought to the AIM market by London stockbrokers Shaw & Company, is currently completing its presentations to institutional investors, pension funds and venture capital groups in London. A number of private Irish investors will also take a shareholding in the company, according to Mr Cruise O'Brien.

The AIM market, operating since June 1995, is primarily used to allow small or new companies to raise money. The market is supervised and monitored by the London Stock Exchange. More than 100 companies are currently listed with a market capitalisation of £2.2 billion sterling. Most companies have raised between £5 million and £10 million.