Jessops sees shares dip on debut

Jessops wants to capitalise on the digital photography boom

Shares in Jessops, the UK's largest photographic goods retailer, have fallen on their market debut.

At close, shares in the group stood at 150p in conditional trading - 5p down on its 155p flotation price.

Earlier the firm said it had cut its offer price from the proposed 185-220p range amid tough market conditions.

But it did add that the sale of 77.3 million shares in the company had raised about £120m ($220m) - most of which will pay off its debts.

The lower share price reflects the current tough market conditions.

Car insurer Admiral has successfully sold shares, but other companies, such as Virgin Mobile, had to cut the price of its shares.

"We are delighted that the global offer has been successfully completed, despite the uncertain stock market conditions for IPOs," Jessops Chief Executive Derek Hine said in a statement.

Float 'shunned'

According to one report in The Times, the group had been forced to cut its flotation price as a result of a lack of interest from institutional investors.

The original offer price of 185p-to-220p would have seen the group valued at up to £189m.

The newspaper said that after an emergency meeting on Thursday night between Jessops' main shareholder ABN Amro Capital, and its stockbroker ABN Amro, they opted to slash the price after investors complained it was too high.

The report also claimed that ABN Amro Capital - which had planned to sell out of the firm or retain a 10% stake at the most - would be left with an 18% stake in the business.

Founded in Leicester in 1935 and operated as a family firm until 1996, Jessops was acquired by private equity firm ABN Amro Capital in 2002 in a £116m deal.

Unconditional trading in Jessops shares begins on the London stock market next week.