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.”
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)