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Williams shares dip in value on stock exchange

Shares in multiple F1 World Championship-winning outfit Williams have already taken an early dive on the Frankfurt Stock Exchange today
On the day that it publicly floats on the Frankfurt Stock Exchange – in so doing making F1 history – shares in Williams have already slipped in value from their initial public offering (IPO).

The multiple world championship-winning outfit – which has hit lean times of late, both in terms of on-track results and more specifically off-track finances following the keenly-felt recent loss of a number of key sponsors – yesterday (Tuesday) issued the shares at €25 each, what was already regarded as a cautious figure. However, by 11:30am today, the shares in Williams Grand Prix Holdings PLC were listed at €24.05, a drop of just under four per cent. The company has been valued at €243 million.

“It's always brave to come to the market, but being brave is what we do,” chairman Adam Parr told Bloomberg Television, adding that 'it's not an easy moment to be born into the financial market' and seeking to point out that the opening trade is not habitually representative of a company's general growth and future development potential. A Frankfurt-based trader, meanwhile, told Reuters that due to F1's reputation as a risky sector in which to invest, 'this is what I expected and I think it will not get any easier for Williams'.

There are 2.4 million shares for sale – representing a 27.39 per cent stake in Williams – with the floatation tipped to raise as much as €60 million for the Grove-based concern. Co-founders Sir Frank Williams and Patrick Head are both selling some of their shares, and are set to make respectively €16 million and €36 million from the sale.

Team principal Williams has reduced his holding – although in retaining just over 50 per cent, the 68-year-old will remain the majority and controlling shareholder – whilst technical director Head is selling more than half of his 23.5 per cent stake and is due to step down at the end of this year. Austrian private equity investor Christian 'Toto' Wolff is similarly selling some of the 16.3 per cent stake that he acquired in 2009.

The third-most successful team in F1 history – with 16 world championship crowns to its name since joining the grand prix grid back in 1978 – has not claimed a title since 1997 nor even won a race since 2004, but has reportedly made a profit for each of the past three years.

Williams relies on sponsorship and prize money for the bulk of its revenue, but has also investigated the possibility of venturing into hybrid technology for road cars in collaboration with the likes of Porsche and Land Rover.

Related Pictures

Click on relevant pic to enlarge
Patrick Head, Director of Engineering, Williams F1
11.02.2010 Jerez, Spain, Patrick Head (GBR), WilliamsF1 Team, Director of Engineering - Formula 1 Testing, Jerez, Spain
Friday Practice 1, Sir Frank Williams(gbr),Team Principal Williams F1 Team
Saturday Practice, Sir Frank Williams(gbr),Team Principal Williams F1 Team
20.02.2011- Pastor Maldonado (VEN), Williams FW33
21.02.2011- Pastor Maldonado (VEN), Williams FW33
19.02.2011- Rubens Barrichello (BRA), Williams FW33
Williams` 2011 F1 livery on the FW33 [Pic credit: Williams]
Sam Michael. Williams FW33 livery launch [Pic credit: Williams]
Williams` 2011 F1 livery on the FW33 [Pic credit: Williams]
Singapore Grand Prix
Williams 40th anniversary demonstrations
Williams 40th anniversary demonstrations
Williams 40th anniversary demonstrations
Williams 40th anniversary demonstrations
Lance Stroll (CDN) Williams FW40
Lance Stroll (CDN) Williams FW40
Lance Stroll (CDN) Williams FW40

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Mark Bragg - Unregistered

March 08, 2011 12:10 PM

Yes, the Frankfurt is one of the best entry markets for businesses to gain liquidity and for primary listings. We also assist firms to list on the exchange and finance $5 to $100 million. if you are interested please go to fselistings info@fselistings.com, www.fselistings.com +27 11 784 1720

KGBVD - Unregistered

March 02, 2011 8:09 PM

Wow you guys are alarmists! The shares are already back up and the team is once again worth 250 mill. OMG! Did you feel that raindrop? THE SKY IS FALLING!!!!

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