Pets at Home shares fell by a whisker in initial trading on Wednesday as the £1.2bn float was left in the shade by a strong debut from fellow high street chain Poundland. 

The pet company, which floated at 245p, ended the day trading around 243p after falling as low as 230p during a rocky start in unofficial trading, which occurs a few days before shares list on the main market.

The slow start contrasted with a strong showing from Poundland.

Shares rose from a listing price of 300p to as high as 400p before closing at 366p – giving the discount chain a value approaching £1bn.

Prices are set to become firmer on Monday when the two firms start official trading on the London Stock Exchange.

The two floats, which have been in the works since last autumn, will prove a boon for US private equity houses KKR and Warburg Pincus, which own Pets at Home and Poundland respectively.

Pets at Home raised £280m on Wednesday, with £210m of this going back to its major shareholders, KKR, and a management team led by chief executive Nick Wood (pictured).

Around 40 per cent of the company will be owned by public shareholders but KKR will retain a 46.2 per cent stake in the business and sell this down over time. Management will hold 4.3 per cent.

Nick Wood said on Wednesday: "Today's announcement marks an important moment for all of us at Pets at Home. We are delighted that our initial public offering has been so well received by colleagues, institutions and retail investors alike, who have recognised that this is a unique and differentiated business with multiple opportunities for future growth.

“Pets at Home has enjoyed strong growth for over a decade and we are now ready to move on to the next stage of our development as a listed business."