Shares in luxury carmaker Aston Martin were down 6.5 per cent at £17.81 by noon on their first day of trading on the London Stock Exchange. The shares had been priced at £19, giving it a market capitalization of £4.3bn.
Fiona Cincotta, Senior Market Analyst at CityIndex told LLB: “Many eyes were on Aston Martin today, which began trading in the London market after much hype in the run up to the listing. Shares opened flat at £19, but started to lose ground, coughing up more than 4% in early trading. The company had cut its initial market price estimate in the run up to the listing from £5.1 billion to £4.5 billion. Aston Martin’s brokers had originally been looking at as much as £22 per share, but extensive kicking of the tyres by analysts and fund managers in recent weeks had been drawing some big question marks over that valuation.”
Aston Martin wasn’t the only one disappointed with its initial public offering today. Another firm, British crowd-lending platform Funding Circle, saw its shares crash 24 per cent on their first day of trading.
It had set an IPO price of 440p per share but its stock slip as low as 334.5p.
Funding Circle offers investors the chance to make returns of 5 per cent or more for lending money to small businesses, according to reports.