Investors are apparently taking a skeptical approach to DuPont’s spun-off Performance Chemicals division known as Chemours, the US business magazine Forbes says in an article on the stock’s initial “when issued” trading performance.

The stock official launch is scheduled for Jul. 1, when DuPont investors will receive one Chemours share for every five of their shares in the parent company.

Chemours’ shares began when-issued trading on the New York Stock Exchange career on Jun.19, priced at $21. In the first three days of trading, the price sank by nearly 18%, the magazine notes, adding that the weak performance also shaved 4% off DuPont’s share price in the same time frame.

Forbes stresses that investor skepticism about Chemours may be somewhat justified, as the fledgling company is heavily exposed to volatile Ti02 markets, is saddled with roughly $4 billion of debt and is committed to paying a dividend.

DuPont additionally has burdened Chemours with large legal liabilities, mainly from production of fluoropolymer products, as the magazine points out. Analysts have calculated the face-value cost of the suits and environmental fines at $295 million, and estimated that the end total could be twice that.

The dim prospects for TiO2 markets in the near term suggest that Chemours shares could well fall to the low-teens, according to comments by Jefferies analyst Laurence Alexander shared by Forbes.

Nevertheless, the analysts say there could be a silver lining as the spin-off restructures: “Since the division will now stand on its own, those expense savings could actually drive the stock,” Jefferies’ Alexander remarks, adding that it believes Chemours management can begin delivering on $80 million in planned run rate savings as early as the third quarter.

One reason for the analysts’ prediction is that the DuPont spin-off, now spending heavily to expand its $600 million TiO2 production capacity site at Altamira, Mexico, will get some relief by the end of this year when the project is expected to be largely complete. This would allow capital spending to be cut to $300-350 million. With the cost benefits from this, Chemours could begin repaying debt.