Premier Foods owns a number of household name brands

Premier's shares stood at 219 pence at the close of trade, having been priced at 215p - the bottom end of the revised 215-230p price range unveiled on Monday

The firm originally planned to price the shares between 230-260p, but had to cut the price to attract investors.

On Monday, Virgin Mobile was also forced to reduce its offer price.

Virgin Mobile has now cut its offer price to between 200-220p from an original value of 235-285p, and has also reduced the size of the stake to be listed to 25% from between 37% and 43%.

'Positive reception'

Tough market conditions have forced the companies into cutting their float prices in order to attract sufficient buyers to make the float a success.

PREMIER FOODS BRANDS Branston pickle Typhoo tea Sarsons vinegar Sun-Pat peanut butter Gale's honey Hartley's jam Loyd Grossman cooking sauces Waistline healthy eating range Ambrosia custard

The share price of 215p gave Premier Foods a market value of �527m ($987m).

The company sold more shares than originally planned, selling 162.8 million shares worth �350m compared with the original target of �300m.

The firm's owner - US company Hicks, Muse Tate & Furst - sold shares worth �232m. New shares worth �118m were also sold with these proceeds expected to be used to reduce debt levels.

Despite the difficulties in getting the float away, Premier chief executive Robert Schofield said the firm had received a "positive reception from investors".