FRANKFURT: Shares in Siemens Energy opened lower than expected on their first day of trading on the Frankfurt stock exchange, as Germany’s biggest-ever spin-off gears up for a challenging future independent from parent Siemens.
Shares in Siemens Energy - which makes gas turbines, power transmission systems and holds a 67per cent stake in Siemens Gamesa - opened at 22.01 euros apiece on Monday, giving the company a market value of 16 billion euros (US$18.6 billion), report agencies.A source had previously said estimates were for a market valuation of between 21-22 billion euros.
By 1352 GMT, shares were trading at 20.86 euros, down 5per cent from the first trading price, after having traded in a range of 19.21-22.98 euros during the session so far.
“I have repeatedly pointed out that we expect volatility to be high in the first few weeks,” Siemens Chief Financial Officer Ralf Thomas told Reuters. “It’s not a situation specific to Siemens Energy, it’s the same with every spin-off.”