Shares of online furniture retailer Made.com fell 9% in a rocky start to its London stock exchange debut.
The company valued its shares at 200 pence, giving it a market cap of £ 775million, which is significantly lower than its original price of £ 1 billion.
Nick Bubb, an independent retail analyst, said that “Made’s much-vaunted IPO has been a bit of a flop” with stocks priced “at the very bottom of the range”.
Stocks then recovered some of their losses, but still closed down 1.5pc to 197p.
Made.com joins a series of recently listed online retailers in London, including Moonpig, the greeting card seller, and the on-the-go app Deliveroo.
Deliveroo’s IPO was dubbed ‘Flopperoo’ after suffering one of the worst debuts in London history. Its shares have fallen by nearly a third in early trades and remain more than a third below the IPO price.
Made, which sells velvet sofas, armchairs, copper-framed beds and rose gold lamps, was established in 2011 by Ning Li, Chloe Macintosh and Brent Hoberman, the serial entrepreneur behind Lastminute.com.
Mr. Hoberman owns stakes in Made through By Design, an investment vehicle where he is the only active person with significant control according to Companies House, as well as in PROFounders Capital, a venture capital firm he then co-founded. left in 2015.
By Design still owns a 5.49 percent stake worth £ 42.5million after selling shares worth £ 4.8million in the list, while PROFounders has a stake of £ 38.6million after selling £ 6.3million.
Mr Li, who went on to launch fast-growing cosmetics company Typology, is sitting on a paper fortune worth £ 68.4million after selling £ 7.9million of shares of listing via Haka Investments.
Other investors include Majedie Asset Management, Axa, the National Farmers’ Union fund and Premier Fund Managers Limited.