Canadian semiconductor technology company Alphawaves shares plunged as much as 21 on their London market debut on Thursday, shrinking its value by more than 600 million pounds 842 million within hours.
The slump comes amid a broader tech stock selloff and only weeks after food delivery firm Deliveroo fell as much as 30 on its debut, potentially hurting the London markets ambitions to attract young fastgrowing companies.
Torontobased Alphawave had already compromised on pricing its initial public offering IPO, selling shares worth 856 million pounds at the middle of a previously announced price range at 410 pence, giving it a valuation of 3.1 billion pounds.
By 1040 GMT the shares were down 21 at 322 pence, reducing the companys market capitalisation to 2.45 billion pounds.
The book was many times oversubscribed and had a real global investor base, and the IPO was the highlight of our professional careers, said Alphawave chairman John Lofton Holt.
We wont judge this on a couple of hours of conditional trading.
He said that 80 of the deal was taken up by fund managers who buy shares on a longterm basis, while half the book comprised British investors.
Through sheer bad luck, Alphawave IP is coming to market in a volatile week, said AJ Bell Investment Director, Russ Mould.
U.S. tech stocks have fallen in recent days, particularly after strongerthanexpected inflation data stoked worries over tighter monetary policy.
Other European IPOs have also struggled to gain…