The glut of companies joining the stock market with ever more ludicrous valuations has finally dried up. But what of the businesses that took the plunge?
A quick look last night revealed a tale of mixed fortunes, best illustrated by some of the FTSE 250’s biggest risers and fallers, with Just Eat jumping 9.1 per cent and AO World dropping 3.6 per cent.
AO World, down 7.6p at 206.3p, has struggled more than most after the online washing-machine seller’s listing price of 285p in February was widely mocked; however, investors appear to be still digesting decent results on Tuesday from Just Eat, which closed up 22p at 262p.
The big IPO winners are Patisserie Valerie, Russian supermarket Lenta, Poundland and Shoe Zone, all trading above the flotation value. The losers? Online fashion firm Boohoo and Pets at Home, with 21.5 per cent and 23.1 per cent falls respectively so far.
The FTSE 100 closed up a touch by 24.26 points at 6,656.68. Today’s GDP data from France and Germany, which is expected to be down, may lead to a more definite response.
Elsewhere, it was brave faces at President Energy, which tumbled 8.88p to 23.25p after bosses admitted there was no oil forthcoming at its Jacaranda well in Paraguay. Drilling has been suspended, with the focus shifting to its two remaining sites; but it insisted the type of rocks and sand found in the dry well were encouraging for future drills.
Another newly floated firm, Brit, announced IPO costs hit £13.8m for the six months to end of June; but with pre-tax profits, excluding costs, up 71 per cent to £96m, investors were unconcerned, and it rose 4.8p to 249.8p.
Glencore, which fell 9.5p to 365.5p, gave a taster of what to expect at next week’s interim results with its latest set of production stats, announcing a 13 per cent increase in first half copper output, but a fall in zinc and nickel production.
And online gambling platform Betfair, up 9p at 1,100p, decided it was better off shedding its loss-making Australian business, revealing the end of a joint venture with Crown Resorts, cashing in A$10m (£5.5m).