Shares in Ferrari stalled on their debut on the Milan stock exchange after trading in the luxury carmaker was suspended.
Ferrari slipped from a debut price of €43 (£32) to €41.75 and trading was halted briefly amid negative sentiment caused by the steep declines in China’s markets.
“The circuit-breaker mechanism was required,” said a broking source. However, the shares later recovered to close up on the day at €43.46.
The Milan share sale came two and a half months after Fiat Chrysler (FCA) sold 10% of Ferrari’s shares on Wall Street at a value of $52 (€48). The latest deal involved Fiat Chrysler distributing its 80% stake in Ferrari to its shareholders on Sunday, ending 30 years of control of the famous brand by fully separating the two companies. Investors received 1 share in Ferrari for every 10 they owned in Fiat Chrysler.
FCA’s own shares opened a third lower on Monday as investors focused on life without the profits, status and revenues of the luxury car-maker and on chief executive Sergio Marchionne’s ambitious growth plans for 2018.
“From the moment we announced the split from FCA, a journey came to an end,” said Marchionne.
“But the truth is that today another big chapter is beginning. This listing marks Ferrari’s independence, which is essential in maintaining its development and potential,” he said, promising customers “ever-more exclusive models”.
At the current share price, Ferrari is valued at about €8bn.
