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Pirelli Shares Deflate in Relisting Under New Chinese Owner - Caixin Global

 6 years ago
source link: http://www.caixinglobal.com/2017-10-05/101153308.html
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Pirelli Shares Deflate in Relisting Under New Chinese Owner

With its shares closing at 6.47 euros ($7.61) on its first day of trading, Italian tire maker Pirelli is worth about 6.5 billion euros, or about 8.5% less than its 7.1 billion euro valuation when it was bought by China National Chemical Corp. two years ago. Photo: IC
With its shares closing at 6.47 euros ($7.61) on its first day of trading, Italian tire maker Pirelli is worth about 6.5 billion euros, or about 8.5% less than its 7.1 billion euro valuation when it was bought by China National Chemical Corp. two years ago. Photo: IC

Shares of Pirelli & C SpA dipped in the trading debut for their Milan initial public offering (IPO), as the well-known Italian tire maker’s value slipped two years after being bought by former Chinese rival China National Chemical Corp. (ChemChina).

The weak debut that saw Pirelli’s shares fall 0.5% on Wednesday capped an equally unimpressive earlier performance for the company’s IPO shares, which sold at the lower end of their range with a final price of 6.40 euros ($7.52). The stock had dipped as much as 3.3% during the first trading session.

At its first-day closing price of 6.47 euros, the company is worth about 6.5 billion euros, or about 8.5% less than its 7.1 billion euro valuation when the landmark deal was signed two years ago. But due to weakening of the U.S. dollar over that period, the latest market value is roughly unchanged in dollar terms in the two years since the deal was closed.

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