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Stellantis' stellar start on its stock market debut

A new auto giant is born after transatlantic Fiat-PSA merger
posted onJanuary 26, 2021
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Carmaker Stellantis shares started trading on Euronext's regulated market in Paris on Jan.18, following the historic merger of French group Peugeot S.A. (PSA) and US-Italian Fiat Chrysler Automobiles (FCA).

The Stellantis shares also began trading on Jan. 18 on the Mercato Telematico Azionario organized and managed by Borsa Italiana SpA in Milan and on Jan. 19 on the New York Stock Exchange (NYSE).

The new group, whose name name comes from the Latin verb "stello", meaning “to brighten with stars, unites 14 car brands (from FCA’s Fiat, Maserati and U.S.-focused Jeep, Dodge and Ram to PSA’s traditionally Europe-focused Peugeot, Citroen, Opel and DS) and employs more than 400,000 people. Stellantis said it expects to deliver cost savings of €5 billion a year without plant closures. 

Stellantis's listing on Euronext Paris stock market was completed through the admission to trading on 18 January 2021 of its 3,119,934,695 common shares, through the direct listing procedure. The reference price was set at €12.570 per share. Market capitalisation was €39.2bn on the day of listing.

Carlos Tavares, CEO of Stellantis, said during the virtual celebration of the listing: 

“Today is the day where Stellantis is born. We are very proud of the listing of Stellantis shares on Euronext and warmly thank all of our more than 99% shareholders and institutional investors who have made this momentous occasion possible. From this day forward, we will leverage the benefits of this €25 billion merger to deliver a strong performance and further enhance shareholder value based on our unmatched competitive advantages. Both FCA and PSA managements have demonstrated their capability to execute their plan. You can trust our ability to deliver on our commitment.”

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John Elkann, Chairman, said: 

"This historic first day of trading of Stellantis shares on Euronext marks the beginning of an era of extraordinary opportunity for our company. These are challenging but exciting times in our industry, with change as rapid as at any point since its foundation over a century ago.  Stellantis begins life with the leadership, the resources, the diversity and the knowhow with which to build something truly unique and something great, providing our customers with outstanding vehicles and mobility solutions, creating consistent value for all of our stakeholders.”

Paris-listed shares of Stellantis closed up 6.94% to $16.23 on the first day of trading and in Milan up 7.57% to $16.32. NYSE-listed shares jumped by more than 11% in their trading debut as auto investors seem to think that Stellantis chances of realizing the promised synergies are good.

“Stellantis faces a mixed outlook as U.S. stimulus plans may buoy Chrysler vs. a more uncertain outlook for Peugeot in Europe. Former PSA CEO Carlos Tavares takes the helm and, similar to his handling of PSA’s takeover of Opel in 2017, we anticipate a new strategy in the first 100 days of his stewardship. All regions face a difficult 1H amid continued lockdowns” said Michael Dean, Bloomberg Intelligence automotive analyst.

Stellantis is now the world’s fourth-largest automaker by volume, with annual production of around 8 million vehicles and revenues of more than 165 billion euros.