Regardless of weak sales, Myer has upgraded guidance for underlying earnings and it has increased its shares to about 4%, challenging the weak market.

Myer is now expecting earnings before interest and tax for 2010-11 to be between $265 million and $272m, although previously it had forecasted $261m.

Shares in Myer, still lands at 16 per cent below their float price as it is unable to grab any upward momentum from the department store's more-than-expected profit result yesterday.

Myer Holdings Ltd's shares, on the very day of their debut atop a $2 Billion float, have dropped by 9%, a development which has rung the warning bells for the firm as well as other retailer of the same sector who are now looking to hold IPOs in the near future.

The shares fell from their initial offer price of A$4.10 per share and hit rock bottom in the opening stages, which led analysts to remark that other firms who are now opening IPOs should re-look their prices and plan carefully.

Australian department store giant Myer Ltd., has ended its Initial Public Offering with a per share issue price of $4.10. Based on this, analysts have estimated that nearly $2 Billion in equity will be raised by the firm. If reports are to be believed, the management and Myer family will hold another $400 Million in equity.

Under the IPO, Myer was offering somewhere between 479.3 million and 499.5 shares, and it has been estimated that when the offer is closed, the company will have 564.8 million to 585 million share in issue.