Ocado's shares slumped 7 per cent yesterday to 167p, after going down as low as 155p in conditional trading, before their official listing on Monday.

The fall occurred despite the loss-making online retailer slashing the offer price of its initial public offering to 180p on Tuesday, from the ambitious figure of 200-275p that was initially projected.

The controversial stock market flotation of Ocado has been marred by concerns of over-valuation of the firm. The share price of 167p values the group at around £868m including new shares, a far cry from the initial talk of around £1.4bn which Ocado had hoped to get.

The Times reports that at least ten of the UK's biggest investors have stayed away from the Ocado flotation, as they deemed the shares to be too expensive. Two global investors bought into the IPO after the company shaved off 20 per cent from its listing price.

Ocado chief executive Tim Steiner called the flotation a "success" in a tough market and said the group received an "extremely positive" response from investors.