Shares in HMV, Britain's largest music, video and book retailer, fell heavily on their first day of trading today after the largest flotation in London for almost a year failed to strike a chord with investors.
The lukewarm reception cast a shadow over other forthcoming UK flotations from the likes of home improvement chains Homebase and Focus Wickes, and Great Univeral Stores' luxury retail brand Burberry.
The share offering has been seen as an important gauge of the market's appetite for new issues, which have ground to a virtual halt in the past year after a slump in equity prices.
Shares in HMV - which operates 325 HMV stores in nine countries as well as 197 Waterstone's book stores, mainly in the Britain and Ireland - fell 6% to 180 pence sterling by late afternoon. The shares will get a full listing on May 15 subject to regulatory approval.
HMV had earlier priced its shares at 192 pence, near the bottom of its 190-220 pence range, giving the company a market value of about £773 million sterling.
Analysts said that with music accounting for just under half of HMV's turnover, investors had been put off by the threat to the industry from compact disc piracy and downloadable music from the Internet.
The flotation is expected to see HMV's two largest shareholders - EMI and venture capitalist Advent - reduce their stakes from 43% and 40% to 9.2% and 7.9% respectively.
The float has allowed HMV to raise £351 million, with EMI receiving up to £182 million, including £40 million from extra shares that may be sold. HMV has said it will use the funds mainly to cut its debt.
