Just Retirement disappointed on its market debut yesterday (12 November) with shares dropping 5 per cent from the initial listing price and wiping £60m off the value of the business.
The annuities specialist listed close to 31 per cent of its share capital on the London Stock Exchange at a share price of 225 pence per share. By the close shares had dropped to 213 pence, meaning the market capitalisation of the business had fallen from £1.13bn to £1.07bn.
At time of writing the company’s share price stood at 196.35 pence, down 13 per cent from its initial valuation.
According to FTAdviser sister paper the Financial Times, Just Retirement is only the third of 27 UK market entrants this year whose share price has dropped on the first day of trading.
Annuities rival Partnership also floated earlier this year, with its initial offering price of 385 pence per share valuing the company at £1.5bn. The company closed 17 per cent up at 450p on day one of trading but is currently trading at 331 pence.
The specialist annuities provider was yesterday valued at £1.13bn. However, at close of play that had fallen approximately £60m to £1.07bn.
Just Retirement declined to comment.
