Shares in UK online retailer Ocado slumped this morning (21 July) despite the company cutting the offer price to entice investors.

The company's stock stood at 163p at 09:14 on the London Stock Exchange, down over 9% from the listing price of 180p.

Ocado yesterday cut the price to 180p less than a day before the retailer was due to list after not enough investors accepted the initial range of 200p to 275p.

The company's plans had been marred by criticism from some analysts, who said the retailer's management had overvalued the business.

Ocado, which has yet to make a profit after a decade in operation, had valued itself at GBP1bn. The reduced listing price valued Ocado at GBP937m.

However, CEO Tim Steiner said he was "delighted" with Ocado's listing.

"We have had extremely positive reactions from investors in the UK, Continental Europe and the US and the fact that our IPO completed successfully in very difficult markets is an endorsement of the long-term growth potential offered by Ocado," Steiner insisted.

Ocado said the listing had raised GBP200m for the business, funds it is looking to use for expansion.