SHARES in music giant HMV tumbled as the cool reception to the group's flotation plans continued.

Only hours after the retailer fixed its offer price at the bottom end of expectations, it fell by 5 per cent in unofficial trading in the City.

HMV was forced to price its shares at 192p after totting up the level of demand for stock from institutional and private investors.

The group, which also owns the Waterstone's book chain, set a target range of between 190p and 220p last month.

Chief executive Alan Giles said he was pleased to have obtained a level within the range and blamed difficult market conditions.

But analysts said that HMV had suffered from concerns about its growth prospects and fears that the retail sector in general may be on the verge of a slowdown.