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.

"It might put a bit of pressure on the valuation band, and pricing that is expected or achieved, for investors to be persuaded. It tells you the interest was a bit soggy to begin with, and I'm not sure how much difference it would have made even if the (broader) market was up today", said Karara Capital investment manager Akshay Chopra.

Myer's shares opened at a market price of A$3.88 per share and immediately saw a slip to A$3.70, before finally closing on A$3.75. Sharers of the departmental store chain giant's rival David Jones Ltd., also saw a 2% fall in per share price.

Retailers, who had earlier been optimistic about offering IPOs in a market which was presumably stabilizing, are now threading cautiously. Analysts are advising the same.