Shares in price comparison Web site Moneysupermarket.com fell almost 10% on their market debut on Thursday after the stock was pitched at the bottom end of its forecast range.
The price range for the IPO had been 170 pence to 210 pence, but the firm priced the shares at the bottom end of the range at 170 pence. This valued the company at £843 million, rather than the top-end valuation of over £1 billion.
The shares floated this morning but immediately fell. By 9.45 am the stock was down nine per cent at 154.5 pence in off-market trading.
Analysts attributed the share price fall to poor market conditions amid fears of a credit crunch, and concerns about increased competition from rivals - such as Admiral's confused.com service and an offering from Tesco Personal Finance that is expected to launch later this year.
The issue raised £170 million for Moneysupermarket.com, which will be used to repay existing debt facilities and fund future growth.