Insurance comparator iSelect has traded at a discount since listing on the Australian Securities Exchange last Monday.

The company ended last week at $1.70 per share, 8.1% below the issue price of $1.85 after its initial public offering was oversubscribed. The stock closed at $1.56 on its first day.

The drop could reflect selling by investors who held previously illiquid shares in the company, Select Equities analyst Danny Goldberg told insuranceNEWS.com.au. Investors expecting a quick profit on debut may also have exited the stock.

iSelect provides price and product comparisons for health, life and car insurance, plus home loans, broadband, gas, electricity and financial products.

Most of its revenue comes from the health insurance unit, which was launched in 2000. Proceeds from the initial public offering will be used to pay down debt and support growth, including by acquisition.