Fiat Chrysler Automobiles NV’s shares opened a third lower Monday on the New York Stock Exchange after the company completed distribution of its 80 percent stake in the high-end sports-car maker Ferrari NV. Investors received one Ferrari share for every 10 Fiat Chrysler shares they owned as part of the spinoff.
The standalone company is now controlled by Exor SpA, the Agnelli family holding company that also controls Fiat Chrysler, with 23.5 percent share, and Piero Ferrari, founder Enzo Ferrari’s son, who retains 10 percent stake.
Ferrari, which was listed in the United States in October, made its stock market debut in Milan Monday, the first business day of 2016. Stocks of the Maranello, Italy, automaker opened at 43 euros ($47) and slipped to 41.75 euros ($45.58) per share before rising marginally to 41.90 euros ($45.75).
“With the listing, a new chapter is opened,” for Ferrari, said its chairman, Sergio Marchionne, who is also CEO of Fiat Chrysler, reported U.S. News, citing the Associated Press. “This listing marks Ferrari’s independence, which is essential in maintaining its development and potential.”
Meanwhile, shares of Fiat Chrysler traded 33 percent lower Monday than its previous close as the Italian-American carmaker ended its 30-year ownership of Ferrari. The iconic sports car-maker accounted for about 12 percent of Fiat’s overall profit before interest and taxes in 2014.
Fiat Chrysler has said it would use the proceeds from the sale to reduce debt and fund Marchionne’s ongoing revamp of the company. However, slowing demand in China and a drop in Brazil’s car market prompted cutbacks in the plan, with the Alfa Romeo and Maserati divisions putting off launch of new models.
“Investors are worried that the value of Fiat could be much lower without its crown jewel,” Vincenzo Longo, a strategist at IG Group in Milan told Bloomberg.