Goldman left red-faced as Equiniti sinks

EQUiniTi flopped on its stock market debut last night in the latest embarrassment for investment bank goldman Sachs.

The share registrar set out to raise £315m to pay off its £253m debt pile, with a float price of 165p per share. But by the time markets closed shares had fallen 8.5pc to 151p.

Earlier this month it was claimed the firm could be worth as much as £700m. But based on its 165p float price it was worth just £495m. By the end of the day its market value had shrunk to £453m.

David Buik, a market commentator at stock broker Panmure gordon, said it was ‘a very inauspicious debut’ for Equiniti.

it is not the first time firms advised by goldman Sachs have endured a disappointing first day of trading.

Last year Pets at Home’s shares slipped 2.9pc on debut from 245p to 238p. and in 2010 Promethean World and Ocado saw their shares drop 3.5pc and 7.2pc respectively on the day they went public.

in 2013 goldman Sachs and the government were accused of undervaluing the Royal Mail. its shares shot up 37.9pc on their first day of trading, from the float price of 330p to 455p. Equiniti provides share registrar services to around two thirds of FTSE 100 companies. it is also Britain’s second largest pensions administration provider, with 8m scheme members.

it generated revenues of £181m and earnings of £39m in the first half of the year.

Before the markets opened guy Wakeley, Equiniti’s chief executive, said: ‘We have always felt that Equiniti belongs in the public markets and i am delighted that our new and existing shareholders have supported this.’

Equiniti and goldman Sachs declined to comment last night on the share price fall.