Mixed Reception For Ocado Flotation Highlights Difficulties In Valuing Company

UK online grocery retailer Ocado has completed a listing on the UK stock market, raising around GBP200mn at a price that values it at GBP937mn. However, the initial public offering (IPO) was to some extent overshadowed by the firm having to cut its offer price at the last minute - reducing it to 180p from a target range of 200-275p - and by a sharp fall in the company's share price shortly after listing (companies are usually valued so that investors taking advantage of the IPO enjoy a small increase in their position on the day of listing). Both of

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