Shares in Ocado rose above their initial flotation price for the first time yesterday.

The online retailer floated last year with its stock valued at 180p, a price that later slipped significantly. However, its shares were worth 196.7p at the close of trading yesterday, up 18.4p for the day.

The rise comes amid continued speculation over a possible takeover approach for the business.

“We’re not sure why Ocado has spiked,” said Shore Capital analyst Clive Black. He said that while a takeover could not be ruled out, he would be “surprised by any incumbent UK food retailer making an imminent move”.

Black added: “While Ocado is expected to have recorded strong trading over the festive period, such short-term activity does not change the fundamental valuation of the stock for us.”

Read more
Online grocery sales ‘to double in five years’ (29 November 2010)
Ocado sets out plans for £210m Warwickshire depot (12 October 2010)
Ocado sales surge but share price slips again (7 September 2010)

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