Shares in Premier Foods, the UK food conglomerate, which was forced to cut its flotation price but increased the issue size, rose 2% in early trading on the London Stock Exchange on Tuesday.

At noon GMT the shares were trading at 219p. Twenty-two million shares were traded by noon, indicating a total volume of around 35 million shares for the day, 20% of the total 163 million shares sold. Bankers estimate that in a well-allocated deal between 15% and 20% of the issue is traded on the first day.