Patisserie Valerie listed at the bottom of its price range - although shares then rose nearly 9 per cent- prompting fears that investor enthusiasm for new listings is wearing off.
The chain, backed by Pizza Express entrepreneur Luke Johnson, listed on AIM at 170p a share — the bottom end of the price range given of between 170p and 200p — and raised £32.8 million.
Johnson, who sold just over 27 per cent of the 138-strong café chain, and management have made £46.5 million in the London float.
Johnson, who is executive chairman, retains nearly 43 per cent of the group and holds his investment through his Risk Capital private-equity vehicle.
He is hoping to repeat the success of his previous achievements which include restaurant chains Pizza Express and Giraffe. But concerns have been raised by some that after a huge boom in retailer floats — such as Pets at Home, AO.com and Boohoo.com — investor interest could have peaked.
In conditional trading, Patisserie Holdings shares jumped nearly 9 per cent to 185p, valuing it at £185 million.