Purplebricks, the online agency that floated a month ago at 100p per share, was yesterday down to 75.0 at one point before rallying very slightly at the end of the day.
It closed at 75.50, some 24.5 points off its original 100p share price under five weeks ago.
Purplebricks’ initial valuation, at £240m, raised eyebrows across the industry.
Almost as soon as it started trading on the Alternative Investment Market on December 17 its price appeared to lack the confidence of many investors and it closed that first day down seven per cent at 93.0p.
Although it rallied early in the New Year, ending January 5 at 99p, it’s been downhill most of the way since then with the biggest drops of 5.5p on January 7 and 6.0p on January 14.
During the same period the wider FTSE 100 has also fallen, but by less than 2.5 per cent in the same period: it opened on December 17 at 6,017.8 and closed yesterday at 5,876.80.
Early this year the so-called ‘star’ fund manager Neil Woodford increased his stake in Purplebricks to more than 25 per cent - but even at that point the company was valued at around £100m, far short of the flotation valuation. However, even at the current depressed share price, the firm would be estimated at being worth around £180m.
The company is thought by some to be the fourth-largest estate agency in the UK with a 60 per cent market share of new online instructions.