Mercedes 1998 Annual Report Download - page 27

THE DAIMLERCHRYSLER SHARES
23
“Day One” for the DaimlerChrysler shares on November 17, 1998
at the New York Stock Exchange.
6.55
6.05
5.91
2.76
35.57
96 1/16
108
83 7/8
Net income
(before merger costs)
Net income
Net income (diluted)
Dividend
Stockholders’ Equity (12/31)
Number of shares (12/31)
in millions
Share price Year-end
High*)
Low*)
98
US $
98
€
5.58
5.16
5.04
2.35
30.31
1,001.7
83.60
94.20
70.60
Statistics per share
the S&P 500 index triggered short-term pressure on share
prices. Following the recovery of the stock markets, in mid-
November, Chrysler share price showed an increase of 26%
compared to the last day of 1997, and Daimler-Benz share price
increased by 21%.
NOVEMBER 17, 1998: DAY ONE. Trading in shares of
DaimlerChrysler began on November 17, 1998, on international
stock exchanges. As the first globally registered stock, it is
traded in eight countries on 21 stock exchanges. The identity of
shareholders is stored in an electronic share register.
The DaimlerChrysler stock was off to a good start on November
17, 1998, with a Day One share price of DM 139.30
(€ 71.20) in Frankfurt and US $83 13/16 in New York.
Thereafter, it rose more strongly than the DAX and the MSCI
Automobile index, an international composite. On March 15,
1999, the share price in Frankfurt reached € 84.75,
representing an increase of 19% over the first day of trading in
November 1998. In New York, the DaimlerChrysler stock was
quoted at US $92 5/16 (+ 10%) as of March 15, 1999.
In mid-March 1999, the DaimlerChrysler stock was the most
heavily weighted in the DAX at 12.1%. In the European Euro
Stoxx 50 Index, its weighting was 5.9%, and in the Stoxx 50,
which also includes UK and Swiss companies, it was weighted
at 4.1%. The share capital of our company amounts to € 2.56
billion. The number of shareholders totals more than 1.4 million;
the largest shareholders are the Deutsche Bank with 12% and
the State of Kuwait with 7%. More than half of the share capital
resides in the hands of Europeans and approximately 25% in the
hands of US investors.
INVESTOR RELATIONS EXPANDED FURTHER. We further
intensified contacts with investors and financial analysts in
1998 and to an ever-increasing degree involved the operational
management in discussions. Investor Relations was confronted
with an especially daunting task since Daimler-Benz and
Chrysler, and later DaimlerChrysler, were being closely
monitored by the capital markets. The main reasons for this
close scrutiny were the positive business trends, the special
distribution carried out by Daimler-Benz, the ensuing increase
of share capital and finally the corporate merger itself. In June
1998, shortly before the capital increase, we organized a
worldwide road show.
As a result of the increase in capital stock amounting to
approximately € 3.8 billion, the largest ever in the history of
German industry, we were able to bring the equity capital of
Daimler-Benz back to the level prior to the special distribution.
An additional challenge was the stock exchange offer to
shareholders of Daimler-Benz supported by comprehensive
marketing and communications activities. In September and
October 1998 we organized another road show in conjunction
with the exchange offer, in the course of which we held more
than 50 separate conversations and a great number of
presentations and conference calls, enabling us to reach more
than 1,200 institutional investors, representing almost 60% of
the capital of Daimler-Benz.
*) November 17, 1998 until March 15, 1999.
2
0
4
0
6
0
8
0
0
0
Chrysler
DaimlerChrysler
Daimler-Benz
March15
99
Dec. 30
98
Nov. 17
98
May 7
98
Dec. 30
97
Market Capitalization
(end of reporting period)
Billions of €