NEWLY floated Ocado failed to recoup the losses it made in last week’s unofficial, grey market trading, yesterday closing 16p shy of the 180p it floated at just over a week ago.
On its first full day of official trading Ocado’s shares started as low as 159.25p before finishing up three per cent at 164p.
The firm’s chief executive Tim Steiner last week blamed hedge funds for “taking a pop” at his online grocer but said he wasn’t worried about the drop in value.
Retail investors were last week offered a chance to cancel their orders after Ocado was forced to drop its value at the last minute after a lack of interest in the shares.
It slashed the price from 200-275p to 180-200p, finally setting the price at the bottom of the lower range.
Those retail investors – staff and customers of the firm – who did not cancel their purchases are now thought to have suffered an immediate hit of over £1m.
Ocado has declined to reveal how many of its customers took up the offer. The firm says it is confident the value of the firm will rise over a two- year period.
However, a string of analysts released damning notes, speculating the firm is worth as little as £400m and warning off investors.