Shares in Formula 1 motor-racing team Williams Grand Prix Holdings PLC fell as much as 6% in their Frankfurt debut Wednesday, after an initial public offering that valued the company at €250 million ($344.3 million) and let the team's co-founders cash out part of their stakes.
By late afternoon in Europe, the shares were trading at €24.20, after hitting as low as €23.70 and as high as €25.25.
The €60 million offer, solely on behalf of selling shareholders, was priced Tuesday at €25 a share, toward the bottom end of an initial range of €24 to €29. The free float is around 24%.
Chairman Adam Parr said Wednesday the shares were sold mainly to institutions and wealthy individuals who liked the potential growth of the company as Formula 1 racing reaches more viewers and Williams moves back up the ranks, potentially attracting more sponsors.
The Williams team was the most successful in the sport in the 1980s and '90s, but for the past decade has been outpaced by rival teams such as Ferrari, McLaren and Red Bull, as it struggled to attract investment and the right partner to provide engines.
Mr. Parr said the company's revenue comes from a share of rights from Formula 1 broadcasters and race promoters as well as from its own deals with sponsors including AT&T Inc. "It's a profitable business and we have every reason to believe it will continue to be so," he said. The company didn't raise any new capital and has no plans to do so.
Frank Williams, the team's founder, now holds a little more than a 50% stake. Christian "Toto" Wolff, a former racing driver who invested in the business before the float, holds 16%, and co-founder Patrick Head now has a 9% stake.
Mr. Wolff's stake could fall under a potential overallotment of 330,000 shares.
Mr. Parr previously said Williams chose Frankfurt rather than the London Stock Exchange because Frankfurt's entry standard allows Williams to continue to report under U.K. accounting rules.
Under International Financial Reporting Standards, or IFRS, the company would be required to disclose details of its sponsorship deals.
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