The world’s seventh-largest automaker, recently merged Fiat Chrysler Automobiles, had strong debut in Europe when shares of the new company became available for the first time on Monday on the Milan bourse.
The first day of trading in the home country of parent Fiat SpA has been auspicious for the carmaker that aims to increase its prowess through globalization: FCA NV is a Dutch registered company, has its global headquarters in London, UK and its shares can be traded both in Milan and on the New York Stock Exchange. The fiscal domicile is also located in Great Britain, but the company would keep day-to-day operations running from its two previous headquarters – located in Turin and Detroit.
Fiat SpA, under the rule of CEO Sergio Marchionne, first acquired a majority stake in the third-biggest US carmaker, Chrysler Group LLC, back in 2009 and has completed the buyout of the company early this year. Now, the two merged automakers have a joint five-year strategy that mulls an overall sales increase of 60% and a fivefold profit jump by 2018.
On the Milan bourse Fiat Chrysler Automobiles opened 2.7% higher and was trading up 2.4% by mid-day at 7.1 euros. FCA also made its debut on Wall Street – where the primary listing is located – opening at $9. Both stocks were benchmarked against last week’s closing price of 6.94 euros ($8.7) for the parent Fiat SpA.