Newcourt, the security and recruitment group, is to become the fourth new company to join the Irish Stock Exchange's IEX market for smaller firms.

Newcourt, which includes Niall McFadden among its directors, is expected to join the market within the next six weeks. Mr McFadden's Irish Estates began trading on IEX yesterday, bringing to 12 the number of firms listed on the new market.

Donegal Creameries, which formerly listed on the main Iseq, also joined the IEX yesterday.

Sources say Newcourt, which has a turnover of about €40 million, will be floated through Davy.

The firm is expected to have a market capitalisation of €35-€40 million.

It will also float on London's Alternative Investment Market.

Newcourt raised €8 million through a private placing last year.

The funding, arranged by NCB, was used to purchase Cork-based Sheehan Security and to expand existing operations.

Newcourt employs 1,500 people across Ireland and operates through a range of businesses including Federal Security, Central Monitoring Services and Sigmar Recruitment.

The firm was established in 2002 by current chief executive Ted O'Neill and Philip Sykes, a former director of AIB Corporate Finance. Together, the men own 20 per cent of the company.

Other investors include the IAWS Co-op (soon to be renamed One51), former Goodbody Stockbrokers chairman Ray French, former A&L Goodbody managing partner James Osborne and former Anglo Irish Bank chairman Peter Murray.

Shares in Irish Estates joined the IEX at €1.30 yesterday, but the stock was soon trading at levels around €1.85.