Wall Street

Iveco Shares Plunge After Its Debut On The Stock Exchange

Iveco shares fall as the Italian truck maker enters markets alone

Iveco shares plunged in its first day on the stock market after CEO Gerrit Marx said that the only Italian truck maker in the market would bet its investments on a small company with proven skills in making profits, as the company expanded its business in trucks, buses, trains and Specialty Vehicles Iveco completed its separation from CNH Industrial on January 1, following the same steps taken by competitors such as Daimler Truck and Triton.

After opening at 11.26 euros per share, giving the company a market value of 3.05 billion euros ($3.5 billion), shares fell 9.9% to 10.14 euros on the Milan Stock Exchange at the end of morning trading, while CNH shares remained, which are now focused on agricultural and construction vehicles, it is stable at €15.04 per share after rising 65% last year and setting a string of recent record highs.

The weak trading during the holiday season, in addition to the closing of the London market, resulted in the need for several days to better assess the reaction of investors to the split, which left Iveco more exposed to the fierce competition in the market.

The group, whose main investor is Exor, the holding company of the Italian family of Agnelli, presented in November its business plan, which focuses on zero-emissions trucks and buses, and vowed that it would operate as a start-up again, as it will witness strong competition in the market of trucks and electric vehicles, which is expected to explode during 2022. To read more [2022 Will Be a Strong Year For Electric Cars].

Iveco is seeking technical partnerships with other companies, including financial technology companies, parts supply companies and development projects companies, knowing that it owns a joint venture with the American company Nikola to produce heavy trucks powered by electric and hydrogen batteries. Read more [Nikola Begins Its First Ever Electric Truck Delivering].

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