In Wednesday afternoon trade, shares dipped 3.25 percent to 482.60 pence, valuing the firm at £3.4 billion

British cybersecurity firm Darktrace came under investor scrutiny on Wednesday over dramatic share price gyrations since it floated on the London stock market.

Based in Cambridge, Darktrace, held its annual general meeting amid growing unease over the stock.

The company, which uses cutting-edge artificial intelligence (AI) technology to combat cyberattacks, launched on the London stock market in April.

The initial public offering (IPO) launched at 250 pence per share, valuing the cybersecurity firm at £1.7 billion ($2.3 billion).

Shares then vaulted higher in subsequent weeks and months to hit a peak of nearly 1,000 pence in September.

Last month, Darktrace also joined London’s prestigious FTSE 100 index of top companies.

But shares then tanked after brokerage Peel Hunt questioned its valuation and technology.

In Wednesday afternoon trade, shares dipped 3.25 percent to 482.60 pence, valuing the firm at £3.4 billion.

However, that was still around double the company’s launch price and initial value.

Darktrace nevertheless now faces potential relegation from the London Stock Exchange’s (LSE) FTSE 100 club.

One shareholder at Wednesday’s AGM complained that a Darktrace director had sold a large amount of stock just as the share price was sliding, sending a ‘mixed message’ to markets.

Another investor argued Darktrace had invested insufficient cash into research and development, in contrast with US rivals.

Yet the company countered on Wednesday that it had delivered ‘strong’ earnings in a critical year.

Having delivered a strong set of full-year results and successfully completed our IPO, 2021 has been a pivotal point in Darktrace’s journey so far, said Chairman Gordon Hurst.

Annual revenues had surged 41 percent $281 million, he added, with a similar uptick forecast next year.