Volkswagen's truck unit Traton dipped below its opening share price of EUR27 a share on Friday morning following its initial public offering (IPO) on the Frankfurt exchange, CNBC reported.

The new entity matched its placement price of EUR27 a share at the opening bell, the lower end of its previous range, but shares traded around EUR26.47 shortly afterwards, the report said.

The company had said earlier this month that it wanted to raise EUR1.55bn-1.9bn (US$1.8bn-$2.2bn) by selling between 10% and 11.5% of the wholly-owned subsidiary, having cut earlier aspirations to list as much as a quarter.

Volkswagen plans to invest the proceeds in an overhaul of its auto production, as it prepares to launch a range of electric vehicles and strengthens an alliance with Ford, CNBC said, noting the IPO was delayed in March, with VW citing jittery markets.

Final Traton price on Friday in Frankfurt was EUR26.33 which will surely have disappointed VW.