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MySale trips on market debut due to stock pricing error

By FashionUnited

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Fashion

The online fashion retailer which counts on Sir Philip Green as a main backer, was set to a disappointing market debut after an error on its listing price. Shares were priced at 226 pence but were accidentally listed at 2.26 pence. Due to this error, MySale's shares

shed almost 27 percent on the Alternative Investment Market in London, hitting a low of 166 pence.

Soon after, a stock market announcement was issued to clarify the pricing, which helped shares recover to close at 210 pence, down 7 percent.

MySale shares priced wrongly on their debut on AIM

“MySale Group trading currency is currently in GBP, as opposed to British pence as intended,” the company said in statement.

Shares were priced at 226 pence but were inadvertently listed at 2.26 pence. After the correction, the stock was listed at the correct price.

Macquarie Capital and Zeus Capital acted as joint brokers on the share issue. The seven-year-old business has reportedly raised 40 million pounds in a couple of days from investors by selling 41.2 percent of the company.

Topshop owner Sir Philip owns a 22.1 percent stake in the business, through his wife's offshore investment firm Shelton Capital, although his overall participation in the e-tailer is thought to be a 25 percent.

Sports Direct buys 4.8 percent in MySale

On a separate note and despite the gloomy stock debut, Mike Ashley's Sports Direct has bought a 4.8 percent stake in MySale in a bid to access the Australasian and Asian markets.

"Sports Direct looks forward to developing its relationship with MySale, including the potential to co-operate on significant collaboration and joint-venture opportunities in Australasia and Asia."

Angela González Rodríguez
MySale
Sports Direct