Ocado has been forced to lower the asking price for its shares in the latest blow to the company’s planned stock market debut.

The online retailer published its initial public offering prospectus offering stock at between 200p and 275p – valuing the retailer at £800m to £1.1bn.

Following the change, the stock is now priced at between 180p and 200p. The revision comes after a number of City analysts suggested the company was over-priced.

Ocado will now publish an additional prospectus and trading with institutional investors is set to start tomorrow. The IPO itself is scheduled to go ahead on 26 July.

Yesterday Ocado revealed its had sold shares to “several thousands” of its most loyal shoppers. However, the £10m raised by selling shares to consumers was well short of the ambitious target of £50m.

Read more
Ocado customers cool on shares offer (19 July 2010)
Ocado eyes US investors as doubt over IPO mounts (16 July 2010)
City warns investors off 'over-priced' Ocado (14 July 2010)

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