WHAT will soon be Scotland's first fully-listed football club is set to join the main market with a capitalisation of just #14.17m, but both the club's chairman and chief executive believe the move will position the business for substantial growth in the future.

Hearts chairman Leslie Deans yesterday revealed that the club had raised a total of #5.06m after expenses with the placing of 3.9 million new Ordinary shares at 140p each.

First dealings are expected to begin on May 19, subject to approval at an extraordinary meeting to be held on May 15.

Chief executive Chris Robinson said he and Mr Deans were both ''obviously very pleased'' with the level of Hearts' market capitalisation, even though the placing raised slightly less cash than was initially anticipated. He also refuted any suggestions that investors might be growing weary of football clubs turning themselves into publicly-quoted companies.

''Markets are volatile things, and they go off the boil for various reasons, including elections,'' Mr Robinson said. ''It's all part of being a part of a market, and Hearts are happy to be there.''

Although the club had considered a listing on the junior Alternative Investment Market, flotation sponsor and adviser Williams de Broe convinced Hearts to go for a full listing after consulting with Stock Exchange officials.

Ramsay Duff of Williams de Broe said that ''all things being equal,'' it was more desirable for Hearts to be a relatively tiny company on the larger market.

''We did consider an AIM listing - in fact, at the outset we were going for an AIM listing because it seemed a more logical option,'' Mr Duff said. ''But then we spoke to the people at the Stock Exchange, and after going over everything they told us we did have the option of going for a listing on the main market.

''It is a relatively small company to be on the main market, but there is substantially more money to be invested on main market companies than there is for AIM-listed companies. Also, there is more liquidity in the after-market, which will provide better support for the share price.''

Mr Duff said that from the Stock Exchange's point of view, the main criteria for a full listing was management continuity. Hearts fulfilled this demand as both Mr Deans and Mr Robinson have been with the club for three years.

Through their jointly-controlled company, New Hearts, the two men took controlling interest in the club in June 1994 with the acquisition of 50.05% of the business. That stake has since grown to 77%, but will be reduced to 45% after the flotation.

Instutional investors will control a further 38.5% of the business, with the remaining shares in the hands of private investors.

As had been previously announced, none of the funds raised will be used for the acquisition of players. Rather, the bulk of the money will be used to upgrade the grounds at Tynecastle Park.

Approximately #3m will be spent building a new 3450-seat Gorgie Road End stand housing corporate hospitality facilities. A pitch heating system will also be installed at a cost of about #238,000.

The remainder of the proceeds will be used to reduce borrowings, which include secured bank overdrafts of #5.03m, secured loans of #845,000 and unsecured loans of #130,000.

Mr Deans said these moves would strengthen the club's financial base, thus allowing it to take full advantage of commercial opportunities that would generate revenue for future player acquisitions. However, he made a point of giving the current squad his full vote of confidence.

''We have in the past invested in players, and we believe we have some of the best young talent in the country,'' Mr Deans declared.