Freeserve shares have crashed to record lows, falling well below their 150p flotation price for the first time since the Internet giant's stock market debut.
Shares in the UK Internet service provider dived to as low as 135p, 15p less than the issue price set by Freeserve's owner, electrical retail giant Dixons.
By the end of trading yesterday, the shares had recovered slightly to stand at 146p, down 91/4p, or 6 per cent.
The fall wiped about £28 million sterling (€43.66 million) off Freeserve's market value of £1.5 billion at the time of its flotation just eight weeks ago.
The share slide also hurt investors who bought into the flotation. Those who bought the maximum entitlement of £750 worth of shares are now holding an investment of around £20 less than when they started.
Analysts said the slump was sparked by a flood of Internet companies coming into the market, but Mr Justin Urquhart Stewart, of Barclays Stockbrokers, suggested investors hold on to their shares until things begin to improve.
