The Share Centre - Ocado customers buying shares

Gavin Oldham, chief executive of The Share Centre, comments on Ocado's initial public offer and what this means to investors.

"Following Ocado's launch onto the market at an issue price of 180p,'grey market' trading soon settled down to range between 160 - 165p.  Meanwhile, Ocado personal customers who applied for £6 -10m shares in total will receive a supplementary prospectus today and have until Friday to confirm or withdraw their application at 180p.  Institutions who are buying in the region of £360m worth of shares will not have that choice.

"Ocado customers can significantly increase their shareholding in the company by withdrawing their application and buying in the secondary market.  This will mean paying stamp duty and dealing commission, however the 10% drop in share price will allow them to increase their shareholding by approximately 9%.  Ocado customers who held back from the initial public offer (IPO) may also choose to invest at these lower price levels.

"Ocado has done well to complete its IPO in difficult market circumstances and we look forward to their inclusion in the FTSE 350 Index of leading shares.  We especially welcome the commitment the company has made to encourage customer and employee share ownership, and will be keeping an eye on Ocado in to 2011."

The opinions expressed in this statement are the personal views of Gavin Oldham and are therefore not necessarily shared by The Share Centre.