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Pirelli shares dip on market debut but CEO promises results

  • Marco Tronchetti Provera is set to continue on the helm of Pirelli until 2020
  • Wednesday's IPO is seen as a test for Chinese investment in Europe

The high-end tire maker Pirelli saw a difficult comeback to the stock market on Wednesday, but its CEO told CNBC that it's too early to fully assess the reaction from investors.

Speaking to CNBC after Pirelli's market debut, CEO Marco Tronchetti Provera promised to deliver margin growth of 9 percent until 2020.

"I think the market needs to be seen in the next weeks and months. For sure we're going to deliver good results," he said.

The stock started trading below its issue price of 6.50 euros ($7.54) per share on Wednesday morning. This isn't the first time the firm known as the "Prada of tires" has been listed. The stock was de-listed in 2015 after the Chinese firm ChemChina bought a majority holding in the company.

Marco Tronchetti Provera is set to continue on the helm of Pirelli until 2020. "Someone within the team will be the one that will drive the company," he told CNBC about his future replacement.

Wednesday's IPO (initial public offering) is seen as a test for Chinese investment in Europe. Pirelli's parent firm ChemChina bought the Swiss company Syngenta for $44 billion in early 2016 and it said at the time that it would be listing the chemical company in a few years.

However, there are concerns over ChemChina and Syngenta's debt. Standard & Poor's said in August that Chinese regulators could have to step in to help Syngenta with its liabilities, the Financial Times reported. But China has already denied any direct support.