Shares in over-50s focused holidays-to-insurance group Saga were priced at the bottom of their expected range today in the latest indication of a waning appetite in the City for new stock market flotations.

Conditional trading began with the valuation set at 185p by the offer, which was expected to raise £550 million, and put Saga's market worth at £2.1 billion.

But it was at the lowest end of the 185p-245p price range announced two weeks ago, which would have seen the group valued at up to £2.5 billion.

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It comes after fashion chain FatFace yesterday said it had shelved plans to float due to current market conditions.