The luxury goods company Burberry has said it is to go ahead with its flotation, despite the turbulent conditions on the world's stock markets.

But the price of 230 pence a share, at which trading will begin, is at the bottom end of the target range announced last month.

In recent weeks, companies such as Yell and Focus Wickes have postponed their flotation plans because of the tough market conditions.

And on Thursday, the London stock market hit a five-year low, tumbling 4.3% to close at 4,230.

Good response

Burberry is only being partially floated by its owner - the retail-to-business services group GUS - which analysts had predicted would increase the chances of the float going ahead..

GUS will retain a stake of about 77.5% in the brand after flotation.

'We are pleased with the response to the partial flotation of Burberry in such challenging stock market conditions," Burberry's chief executive Rose Marie Bravo said in a statement.

"Burberry has strong business momentum with multiple growth opportunities by product, channel and region."

Conditional trading in Burberry shares will begin on Friday, with full trading starting a week later.

The downward spiral of the world's equity markets has put paid to the flotation hopes of several companies.

Earlier this week the Irish drinks and snacks company C&C abandoned its plans, citing "economic conditions".

Last week Yell, the owner of business directory Yellow Pages, said it was postponing its flotation, which had been expected to raise about �2bn.

And DIY retailer Focus Wickes has also put off plans of a share listing in which it had hoped to raise �1bn.