In a dramatic U-turn, British pubs group Punch Taverns is relaunching its previously postponed share flotation at a lower price.

Punch, Britain's second-largest pubs group, is offering shares to investors at 230 pence a share, only days after calling off a planned float at 250-300p.

The already over-subscribed issue is expected to close later on Monday and the shares will start trading on Wednesday, giving the pub group a market capitalisation of around �570m.

The decision to go ahead with the sale, albeit at a lower price, should lend some cheer to the London market, which had been badly rattled by the postponement.

Casting a pall

The company withdrew its original offer late on Wednesday just before its shares were to start trading.

Combined with a disappointing market debut from retailer HMV Group the previous week, Punch's decision cast a pall over the London market, which has become used to a steady flow of share flotations.

A few other sales, including that of betting shop chain William Hill and quality control firm Intertek Testing Services, are now likely to be launched soon.

Punch was formed in 1997 by Hugh Osmond, when he bought former brewer Bass's pubs estate.

Mr Osmond rose to prominence in 1999, when he snapped up Allied Domecq's 3,500-strong pubs estate, beating off competition from Whitbread.