Newly listed women’s value clothing retailer Bonmarché (LON:BON) started trading on AIM on Wednesday and went straight to a premium to the placing price.
As previously reported, the high street chain is placing 20mln shares at £2 a pop to raise £40mln. Those 20mln shares represent a 40% stake in the company.
On the first day of dealings, shares were changing hands at 215.50p - around a 7.5% increase on the placing price.
Bonmarché's decision to join the stock market is a boost for the downtrodden high street, which has suffered from restrained consumer spending since the financial meltdown.
The company, which specialises in clothes aimed at over-50s, has 265 stores in the UK, but also sells online and using mail-order catalogues.
Last year, the company generated £147mln in revenues and underlying earnings (EBITDA) of £9.1mln.
Bonmarché was bought by private equity firm Sun European Partners for just £10mln in 2012 when former owner Peacock's went into administration.