Shares of Canadian microchip designer Alphawave IP fell 19% in the company’s initial public offering (IPO) on the London Stock Exchange.
Alphawave sold £856 million British pounds ($1.2 billion U.S.) worth of shares at £4.10 per share, giving it a market value of £3.1 billion. The company sold £360 million new shares, and existing shareholders sold down stock worth roughly £496 million.
Approximately 28% of Alphawave IP’s business was listed on the London Stock Exchange.
However, within hours of trading, the share price fell nearly 20% to £3.28, cutting the company’s market capitalization by more than £500 million. Shares recovered slightly and were trading at £3.33 later in the session.
The IPO comes as stock markets around the world take a hit, with the pan-European Stoxx 600 falling over 1.3% in early trading Thursday (May 13).
European markets are following the negative trends seen in Asia-Pacific and the U.S. after the latest American inflation data showed higher-than-expected price pressures.
Founded in Toronto, Alphawave announced it intended to list on the London Stock Exchange last month rather than New York’s tech-focused NASDAQ.
Other firms that have listed on the London Stock Exchange this year include food delivery firm Deliveroo, cybersecurity start-up Darktrace and shoemaker Dr. Martens.
