Volkswagen‘s truck unit Traton dipped below its opening share price of 27.00 euros a share on Friday morning following its initial public offering (IPO) on the Frankfurt exchange.
The German carmaker matched the placement price of 27 euros a share at the opening bell, the lower end of its previous range, but shares traded around 26.47 euros shortly afterwards.
The company said earlier this month that it aimed to raise 1.55-1.9 billion euros ($1.8-$2.2 billion) by selling between 10% and 11.5% of the wholly-owned subsidiary, having cut earlier aspirations to list as much as a 25% stake.
Volkswagen plans to invest the proceeds in an overhaul of its auto production, as it prepares to launch a range of electric vehicles and strengthens an alliance with U.S. stalwart Ford Motor Co.
The IPO was delayed in March, with VW citing jittery markets. Shaky sentiment for new listings was evident this week as Global Fashion Group on Wednesday drastically cut its IPO offering price in a last ditch attempt to draw investors.
