Inside sources have said that the UK pub operator, Punch Taverns, will go ahead with its planned listing on the London stock exchange but at a reduced size and initial share price.

Last week, the company pulled out of plans for an initial public offering because of adverse conditions. The source said Punch, the second largest pub operator in the UK, would now list at 230 pence per share instead of the previously anticipated 250 pence to 300 pence.

At 230 pence per share, Punch would have a market capitalization of £570m. The company had intended to raise £250m by floating 40% of the business on the open market.