Shares of Porsche fell below their initial public offering as interest in the sports car maker was not enough to offset an overall decline in European auto stocks.
On Monday, the third day of trading since parent company Volkswagen Group’s $72 billion Porsche IPO, the stock price was 81 euros, down from the IPO price of 82 ,50 euros.
The broader market was also down, with the pan-European STOXX 600 index losing 0.6% while a sub-index for auto stocks, the SXAP, fell around 1.1%.
A banker involved in Porsche’s IPO said that while the carmaker’s shares were down, they held up well against much steeper declines in the broader market over the past three days.
Shares of Porsche avoided falling below its IPO price for the first two days of trading Thursday and Friday, closing at 82.50 euros on both days.
A second banker involved in the deal added that risk sentiment had likely taken over, explaining Monday’s plunge in Porsche shares.