Aberdeen-based North Sea oil and gas producer Ithaca Energy made an unimpressive stock market debut in London on Wednesday as the firm staged the UK’s largest initial public offering (IPO) of 2022.

Ithaca owns a 70% stake in the controversial Cambo development in the North Sea.

Ithaca’s shares fell as much as 11.6% below their £2.50 issue price, touching a low of £2.21 shortly after midday.

The shares were later down 10.1% at £2.25.

Ithaca’s IPO priced at the bottom of the expected price range to give the company an initial stock market valuation of £2.45 billion .

At the top of the original price range it would have been valued at £3.1 billion.

Ithaca is owned by Tel Aviv-listed Delek Group.

“Ithaca has IPO’d into a difficult broader market backdrop and the near term weakness probably underlines that,” said Investec analyst Nathan Piper.

Reuters reported that with a free-float of 12%, Ithaca is the first major firm to take advantage of new London listing rules that reduced the proportion of shares required to be in public hands from 25% to 10%.

Ithaca Energy executive chairman Gilad Myerson said: “I am delighted with the outcome of our IPO.

“We have received great support from a high-quality selection of institutional investors and I am excited to welcome them on board as we continue to create value in the public markets.

“Ithaca Energy has undergone a transformation over the past three years to become one of the UK’s leading independent oil and gas companies and I am very excited for what lies ahead as we continue our journey in the public markets.”