Scandal won't stop £5bn debuts

MORE than £5bn of new share issues coming to market in the next month will go ahead despite continuing falls on world equity markets and the latest US accounting scandal.

But on London's grey market, bookmakers were jittery, marking down the expected first-day closing prices of Focus Wickes, which starts trading next Tuesday, Yell, which begins a day later and drinks group C&C, which is planning to get away later in July.

Private Finance Initiative specialist Mouchel came deparately close to pulling its flotation today. However, after talks with float sponsor and broker Cazenove, Mouchel directors decided to go ahead with Friday's market debut, pricing the stock at 125p and valuing the company at £77.5m in the middle of the previously-signalled £70m-to-90m range.

'We have decided to bite the bullet,' said chief executive Jim Harding.

Meanwhile, Focus Wickes' advisers said the plunging markets would not damage the DIY group's flotation. A source close to company said: 'Obviously today's events are not helpful but they are not going to impact on the float. Focus Wickes was priced for this market. We were very aware of the uncertain markets when it was priced.'

The group announced an indicative price range of 230p to 290p, valuing the company at about £1bn. Cantor Index today shaved 3 1/2p off its grey market price, quoting 252p-259p.

Sources at Yell said it is having a strong response to its investor roadshow. 'This is a class company which will ride all market conditions,' said one. Its grey market price has been trimmed 7p to 300p-310p on an indicative range of 270p to 345p, valuing the company at just over £2bn.

There was a slightly larger markdown at Irish drinks group C&C, coming to market at about e1.1bn (£710m).

Cantor's David Buik said the only new issue market hedge fund punters are interested in is retailer Burberry, whose quote held steady for a float planned for a fortnight's time, valuing the company at about £1.4bn.