IPO market hit as MySale slumps and Wizz Air pulls float
Monday 16 June 2014
London’s float rush suffered two further blows today as shares in online retailer MySale, backed by Topshop boss Sir Philip Green, began trading at a 20 per cent discount and low-cost airline Wizz Air pulled a planned 1 billion (£798 million) listing.
MySale, an Australian fashion flash sale site which is 25 per cent owned by Green’s wife Tina, had placed shares at 226p last week to value it at £340 million. When trading began on the junior AIM stock market today, the shares slumped 21 per cent to 179p, cutting its value to £270 million.
But sponsors to the issue, McQuarrie Capital and Zeus Capital, later said the initial share price had been incorrectly quoted in pounds rather than pence, giving the impression the shares had crashed immediately trading began. They will be repriced in pence from tomorrow.
Wizz Air, which had hoped to raise up to 200 million in new money through a sale of shares on the London Stock Exchange, blamed turmoil in the airline sector for the decision to pull its float. This followed profit warnings from Lufthansa and Aer Lingus last week and rising tensions in the Middle East.
It said the decision was made despite “positive response to our business story and the company’s growth opportunities and prospects within the institutional investment community”. Wizz Air revealed its planned flotation last month on the same day as fashion group Fat Face pulled its flotation. Wizz Air was being brought to market by investment banks Barclays, Citigroup and JPMorgan.
The spate of bad news comes as Lloyds Banking Group finalises pricing of its offer of shares in TSB, the newly spun-off bank.
Talk over the weekend was that Lloyds could tweak the price of the shares, which are available to retail investors, up slightly to value TSB around £1.2 billion. Final pricing and first dealings are due on Friday.
Stations and airports catering giant SSP, run by former WH Smith boss Kate Swann, is still expected to announce its plans to float this week. That share offer could raise up to £500 million and value the Upper Crust-to-Caffè Ritazza company at some £2 billion.
Also today, Portuguese engineer Mota-Engil said it is floating its African business in London and biopharma group Abzena said it will join AIM.
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Axe wielding man shot dead after attacking four New York policemen on busy street
- 3 Watch what happened when food critics were unknowingly served McDonald's
- 4 Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
- 5 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Renee Zellweger on plastic surgery rumours: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Axe wielding man shot dead after attacking four New York policemen on busy street
This 'woman calls police to order pizza' story isn't going where you're expecting
Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...