Underpowered Ferrari's shares stall on first day's trading in Milan

Fiat first listed 10 per cent of Ferrari on the New York Stock Exchange in October

The famous red and yellow of Ferrari dominates the front of Milan’s stock exchange (Reuters)

Ferrari stalled on the starting grid on its first day trading on Milan’s stock exchange, with its shares being briefly suspended as they dropped on their Italian debut.

Shares in the luxury sports car marque, whose demerger from Fiat Chrysler Automobiles was completed over the weekend, opened at €43 but trading was briefly suspended when circuit breakers cut in as the shares fell to €41.75. The stock ended up, however, at €43.53.

Fiat first listed 10 per cent of Ferrari on the New York Stock Exchange in October. It has now become an independent, following parent company Fiat Chrysler Automobiles’ decision to list its remaining 80 per cent stake in the luxury car marque. Each existing Fiat shareholder was given one share in Ferrari for every 10 in the parent company.

Sergio Marchionnne, Fiat’s colourful chief executive, is seeking to cut debt and grow Ferrari by increasing its presence in the general luxury goods market. Unencumbered by Ferrari, Mr Marchionne is planning an ambitious $48bn (£33bn) investment programme into what remains of Fiat Chrysler, with the lion’s share going to its Jeep and Alfa Romeo brands.

Fiat’s founding family, the Agnellis, remain Ferrari’s largest shareholder with a 23.5 per cent stake, while Piero Ferrari, the son of its founder Enzo, controls 10 per cent. Between them, the Agnelli family’s Exor investment vehicle and Mr Ferrari will control almost 49 per cent of the voting shares.

Its dominant position in the luxury sports car market and its relative financial stability resulted in its New York listed shares peaking at $56.75, giving the company a valuation of more than $10.7bn. Since then, the stock has performed less well, and investors have mainly taken a pass on a company that many viewed as richly valued at its $53 listing price.

The first day of trading in Milan may have been sluggish for Ferrari but for Fiat Chrysler it was even worse, with the company losing approximately one third of its value as Milan opened, even though Ferrari counted for only 12 per cent of group profits. The stock recovered later in the trading session to close nearly 5 per cent lower at €8.15.