Shares of SSP (LSE: SSPG), the food and coffee retailer, were up 2% in late trade, having risen by as much as 5% early this morning.
The Caffe Ritazza and Upper Crust owner set the offer price at the bottom end of the indicated price range, at 210p per share, and the pre-trading price valued the company at £997m. The shares have added 5p to 285p.
Companies have increasingly priced their shares at a less demanding price point due to IPO fatigue. The strong performance stock market in 2013 — in which time the FTSE 100 gained 14.4% — triggered a surge in flotations.
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Most have underperformed, and investors are being careful about where they put their money. Fat Face, the fashion retailer, was forced to abandon its flotation due to a lack of interest.
SSP has avoided becoming the latest IPO flop, and should enjoy better aftermarket performance than some of the more high profile listings in 2014.
SSP’s chief executive, Kate Swann, said:
“We are very pleased with the level of support that we have received from a broad range of investors. It is a strong endorsement of SSP’s strategy, and of the potential for future growth that we see for our business.”
