Michael Page shares leapt ahead last week, after a deeply discounted IPO (Initial Public Offering) which saw US parent Spherion dispose of its recruitment subsidiary for £656.3m.

The shares were originally offered at 175p, 15p below the bottom of the estimated price range of 190-250p. A week later, however, they were trading at 191p, a rise not mirrored by other recruitment stocks.

Despite the discounting, the float has been seen as a success, achieving a 100% IPO during difficult market conditions in which, for example, the recent float of Orange failed to achieve a premium despite heavy discounting.

The issue was oversubscribed by a factor of 1.3. A spokesman for Page said that achieving the IPO in a tough market was a tribute to advisers Credit Suisse First Boston, and that the company was ‘very happy’ to be back on the stock exchange.

The swift rise in Page shares was attributed to institutional investors who were unable to get in on the launch. One banking insider commented: ‘A lot of people see Michael Page as a must-have. Recruitment is a rare growth industry.’

Other recruitment shares failed to follow Page’s rise. The sector as a whole fell by over 20% while the Page IPO was being prepared, causing analysts to speculate that Spherion would postpone the float or seek a trade buyer.

In the event, the HR said it was satisfied with the float, which values Page at nearly double the £330m Spherion paid for it in 1997, and leaves it with a post-allocation option of 46 million shares.

The IPO will also benefit Michael Page senior management, who were given options on 6% of the stock, worth £40m at the issue price.