IPO market hit as MySale slumps and Wizz Air pulls float

 

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.

Start your day with The Independent, sign up for daily news emails
Voices
voices
News
general electionThis quiz matches undecided voters with the best party for them
Arts and Entertainment
Keira Knightley and Matthew Macfadyen starred in the big screen adaptation of Austen's novel in 2005
tvStar says studios are forcing actors to get buff for period roles
News
Prince William and his wife Catherine, Duchess of Cambridge show their newly-born daughter, their second child, to the media outside the Lindo Wing at St Mary's Hospital in central London, on 2 May 2015.
news
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before