Shares of Aston Martin And Funding Circle Continue To Drop After IPOs

Last Thursday, the shares in Funding Circle and Aston Martin continued to drop after its disappointing debuts on the London Stock Exchange last Wednesday.

On Thursday afternoon, Aston Martin, the luxury car maker, saw its shares slump by 1.89 percent to £17.75, prior to rallying to £18 as the market closed.

On Wednesday, the prices dropped to as low as £17.75 after opening at £19 per share. The firm was also valued at approximately £4 billion, short of the £5.1 billion that it had aimed for.

Meanwhile, the shares in Funding Circle, a peer-to-peer lender, have dropped by as much as 6.85 percent from 365p to 340p.

The fintech firm listed at 440p when the market opened last Wednesday. However, at one point, it dropped by more than 24 percent below its initial price target.

In comments regarding the IPO on Wednesday, Jon Moulton, an investor of Funding Circle, said that “people clearly thought it was overpriced”, however, he said, “as a shareholder [I] clearly hope – and expect – operating success [to] drive the share price higher.”

Laith Khalaf, a senior analyst at Hargreaves Lansdown, further noted: “Longer term the prospects for Aston Martin will be determined by its ability to ramp up production, without compromising the exclusivity of the brand.”