Porsche shares fall 1.8% on third day of trading since $72 billion IPO

Porsche's shares fell below its listing price on Monday, the third day of trading since its $72 billion listing by parent company Volkswagen.

The closely watched initial public offering IPO was the largest listing in Germany in more than 25 years despite volatile global markets.

Porsche shares fell to 81 euros on Monday, which is 1.8% less than the IPO price of 82.50 euros. At 1100 GMT, they were trading at 81.48 euro per share, down 1.1%.

The overall market was down, with the pan-European STOXX 600 index losing 0.6%, while the sub-index of auto stocks fell by about 1.1%.

One banker involved in the Porsche IPO said that while shares in the carmaker were down, they are doing well compared to the smaller drops on the wider market over the past three days.

Porsche shares fell below its IPO pricing for the first two days of trading on Thursday and Friday, closing flat at 82.50 euros both days.

A second banker involved in the deal said that risk sentiment had probably taken over, leading to Monday's fall in Porsche shares.

Since the company's debut, the wider auto sector is down about 5.6%, while the shares in parent Volkswagen are down about 10%.

As standard in an IPO, the deal includes a greenshoe option that allows a stabilisation managporscheer to purchase shares in the market at the IPO price in the first 30 days after listing to provide price stability.

The greenshoe option on Porche's IPO is equal to 15% of the base offering, which will grow from 8.2 billion euro to 9.4 billion euros if the option is fully exercised.