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Ferrari IPO valued at up to $9.8 billion in the US

Ferrari IPO

Sports car-maker Ferrari filed papers for IPO offering setting price of shares placing value of the company in the $10 billion segment.

Italian sportscar-maker Ferrari estimates that its initial public offering will be priced between $48 and $52 per share, placing value of the company at $9.8 billion. Fiat Chrysler Automobiles will sell 10% of Ferrari shares in the IPO. The proceeds will be used to further invest in FCA, so as to boost global sales to 7 million units by 2018.

This Ferrari IPO would be particularly noteworthy for FCA, CEO Sergio Marchionne as his earlier attempts to merge FCA and General Motors so as to share costs in the development of cleaner and more intelligent vehicles did not go through.

Ferrari will offer 17.2 million shares in the IPO which equates to 9% of stake while an additional 1.7 million shares will be sold if the Greenshoe option comes into effect. Thus FCA would be able to raise $982 million through this IPO offering.

With this Ferrari IPO offering, the company will list of the New York Stock Exchange, sometime in mid October, under the symbol ‘RACE’ and start trading by October 21, 2015.

After selling 10% of Ferrari in the IPO, Fiat Chrysler also plans distribution of another 80% to its shareholders while the balance 10% will continue to be in the possession of Piero Ferrari, son of company’s founder, Enzo Ferrari.

One-off Ferrari SA Aperta – Photos

via CNBC

About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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