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Eurowag shares fall 10% after cut-price London debut

By Reuters

LONDON – Czech trucking services firm Eurowag made its debut on the London Stock Exchange on Friday, with shares falling after floating a day late and at a cut price.

The Prague-based company provides payment services and fleet management systems for trucks and joins a rush of companies floating on public markets.

The company’s shares, trading under the name Wag Payment Solutions, fell 10% to 134.98 pence by 0710 GMT.

Eurowag – which initially planned to float on Thursday – had set its offer price at 150 pence per share prior to markets opening, below the guide price of 175 pence indicated earlier in the week which was already at the bottom of its stated range.

The company said it offered 113 million shares to raise around 200 million euros ($230.90 million), valuing the company at around 1 billion pounds.

Europe’s initial public offering market had its strongest third quarter in a decade, though rising bond yields and talk of monetary policy easing has somewhat soured market sentiment.

The float comes amid growing focus on Europe’s haulage industry in Britain, with a shortage of foreign drivers leading to major supply chain disruption and fuel shortages.

Eurowag was founded by majority shareholder Martin Vohanka in 1995. The company hired insurance veteran Paul Manduca, a former chairman of Prudential, as chairman ahead of the IPO.

($1 = 0.8662 euros)

($1 = 0.7352 pounds)

(This story corrects spelling of founder’s surname)