GenIP PLC, the latest spin-out from Tekcapital PLC (LSE:TEK), made a muted start on its London stock market debut.
Shares in GenIP, which provides analytics services using generative AI, fell to 30p on its first day of dealing, having raised funds at 39p in its initial public offer.
In the IPO, the company raised £1.75 million of new investment, an upgrade on the £1.5 million it was originally looking for. After deducting fees etc, the business will actually only see £1.2 million of that larger sum.
With a market capitalisation of £6.38 million, GenIP will be at the micro-end of the AIM market.
Tekcapital is holding onto a stake of 63% post the flotation, leaving quite a large overhang and a fairly restricted free float.
Chairman Clifford Gross called GenIP "a terrific new company that we think can make a positive impact by helping its customers bring new innovations to market".
He added: "With a significantly compressed gestation period, this IPO has resulted in a significant return on invested capital for our shareholders."