Petershill IPO falls flat on first day of trading

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Goldman Sachs Group floated its alternatives business Petershill Partners on the London Stock Exchange Tuesday at a £4 billion ($5.5 billion) valuation, but had a lackluster debut.

The stock of the company was valued at 350 pence per ordinary share at the opening on Tuesday and its share price did not drop below the opening price when markets closed.

The firm’s stock traded as high as 359 pence per share and as low as 337 pence during the opening day.

The IPO was targeting a free float of 29% of issued share capital and sold £1.2 billion worth of shares. Petershill Partners raised £547 million selling new stock, while its backers offloaded existing shares worth £465 million pounds, Bloomberg reported. The firm originally marketed the shares at 320 pence to 380 pence each.

Petershill Partners acquires direct minority equity investments in alternatives managers to accelerate their development. Currently, it owns minority investments in 19 firms with $187 billion in combined assets under management.

Following the IPO, Petershill will be operated by Goldman Sachs Asset Management.

The company is set to be eligible for inclusion in the FTSE U.K. indexes following the IPO.

“We experienced a high degree of interest from investors, who recognized the unique strength and track record of the Goldman Sachs operator team, the attractive profile and prospects of our alternative asset manager partner firms and the benefit of a fully independent board,” Naguib Kheraj, independent chairman of Petershill Partners, said in a news release Tuesday.