Project Telecom dispelled any lingering fears about the success of its flotation plans on Tuesday, when its shares started trading on the London Stock Exchange and immediately rose sharply in some healthy-volume trading.

Project Telecom, which was priced to open at a conservative 70p, rose quickly to 95p before settling down to trade around 85p later in the day. Towards the end of the afternoon, nearly 10m shares had changed hands.