Mouchel leaps after market debut

PRIVATE Finance Initiative specialist Mouchel braved shattering investor confidence with a debut on the stock market which saw the shares jump to a 6% premium.

Stock market falls and the latest US accounting scandals had Mouchel wobbling on Wednesday before deciding to go ahead with a pricing of the shares at 125p on the advice of broker Cazenove.

The shares, which had been two times subscribed, rose 7 1/2p to 132 1/2p in early trading, valuing the company, whose flagship PFI contract is the management and planning of the maintenance of the M25, at about £82m. It later settled at 135 1/2p.

The float's success will soothe nerves at telephone directories group Yell and DIY group Focus Wickes, due to make their market debuts in London next week, and at fashion retailer Burberry and Irish drinks group C&C, expected to float the week after.

Meanwhile, in the US, the wobbling new issues market saw Medco, a spin-off from pharmaceuticals giant Merck, delay its debut until next week. Under pressure from its banks to repay loans, embattled Tyco International, however, is still set to go to market next week with one of the largest spin-offs this year.

Tyco's float of its CIT Group subsidiary is expected to test investors' tolerance.