The German carmaker matched the placement price of 27 euros a share at the opening bell, the lower end of its previous range, but shares traded around 26.47 euros shortly afterwards.
The company said earlier this month that it aimed to raise 1.55-1.9 billion euros ($1.8-$2.2 billion) by selling between 10% and 11.5% of the wholly-owned subsidiary, having cut earlier aspirations to list as much as a 25% stake.
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 U.S. stalwart Ford Motor Co.
The IPO was delayed in March, with VW citing jittery markets. Shaky sentiment for new listings was evident this week as Global Fashion Group on Wednesday drastically cut its IPO offering price in a last ditch attempt to draw investors.
"We have a really great setup, we have a powerful brand ... We are prepared to transform the transportation," Andreas Renschler, CEO of Traton, told CNBC's Annette Weisbach.
Renschler said the next six to nine months was likely to be pretty stable for the truck market in Europe. He warned that a lot of things are unknown in the current environment, noting the U.S -China trade war, but said companies needed to take the opportunities that were still evident in the global economy.