(Bloomberg) -- Syensqo SA, a chemicals maker carved out from Solvay SA, began trading Monday with an equity value just shy of €10 billion ($10.8 billion), in one of the largest spinoffs in Europe this year. 

The stock started trading at €90 under the symbol SYENS on Euronext’s markets in Brussels and Paris before rising to €92.74 at 11:31 a.m.

This compares with a reference price of €83.25 a share. Syensqo had targeted an equity value of at least €10 billion ($10.8 billion), people familiar with the matter said ahead of the spinoff. 

Solvay joins the ranks of companies like Novartis AG and GSK Plc in Europe turning to spinoffs to list a unit, as the market for initial public offerings has been hampered by surging interest rates and the wars in Ukraine and Gaza.

More than half of major spinoffs since the start of 2022 have been performing poorly, with Sanofi’s Euroapi SA faring the worst. Shares of the 10 companies have declined 10% on average.

Solvay’s shareholders approved the split on Friday, with stockholders receiving one share of Syensqo for each of Solvay that they own. Solvay, which closed at €112.35 on Friday, dropped to €22.07 in mid-morning trading, reflecting the market value that moved from the parent to the spinoff.

The spinoff is already profitable for Solvay shareholders: The value of the two stocks combined in late-morning trading is €114.67 compared with Friday’s close of €112.35 for the parent.  

Read more: Solvay Targets €10 Billion-Plus Valuation for Syensqo Spinoff

With the move to list Syensqo, Brussels-based Solvay aims to create a specialty chemicals company with above-market growth while concentrating on cash generation with its remaining essential chemicals business. 

During a spinoff, no money is raised as the new firm’s stock is handed to shareholders of the parent company. The transaction does not depend on investor appetite for the shares. 

Solvac SA, the listed investment vehicle for the founding families of Solvay, owns about 31% of both Solvay and Syensqo after the spinoff, according to regulatory filings.

Read more: What’s a Spinoff? Why and How Companies Break Up: QuickTake

--With assistance from Alexandra Muller.

(Updates with Solvay trading in sixth paragraph.)

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