Reuters
Published Jun 28, 2019 08:33AM ET
Volkswagen's Traton shares limp on stock market debut
FRANKFURT (Reuters) - Volkswagen's (DE:VOWG_p) truck unit Traton (DE:8TRA) (ST:8TRA) made a lackluster start on its market debut on Friday as its shares slipped below their initial public offer price in early trade.
The shares opened at their IPO price of 27 euros ($30.75) and then slipped slightly to 26.64 euros a share. Germany's benchmark DAX index was flat.
Weak demand for German listings forced VW to scale back its IPO of Traton and it priced the offering at the low end of its target range.
On Wednesday, online fashion retailer Global Fashion Group slashed its initial public offer price, citing "current market conditions", in a bid to salvage its stock market listing.
Volkswagen floated 11.5% of Traton's shares in a scaled back initial public offering which had initially sought to list a stake of up to 25% of the shares and put the company's truck business on an independent footing.
Proceeds from the offering will flow to parent Volkswagen which aims to use the funding to invest in mass producing electric cars.
Traton, which includes the MAN, Scania and Volkswagen trucks businesses wants to create a global trucks operation.
A flotation could give Traton the resources to deepen its relationship with U.S. truck maker Navistar International Corp (N:NAV), in which it currently owns a 16.85% stake.
Upon being asked whether Volkswagen plans to buy out Navistar, Volkswagen's Chairman Hans Dieter Poetsch said, "Today's steps make many things possible. Currently there are no concrete plans."($1 = 0.8780 euros)
(This story corrects final paragraph to include Hans Dieter Poetsch's new title of chairman)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.