FCA Will Offer Shares, Securities

Fiat Chrysler Automobiles NV says it will offer 87 million shares and $2.5 billion (€2 billion) in mandatory convertible securities.

The shares will come from the recently merged company's treasury. The offer will include shares bought back from Fiat SpA stockholders who declined to convert their holdings into FCA shares when Fiat and Chrysler completed their merger in October.

The company says it will issue an additional 13 million common shares and $375 million in convertible notes if initial demand justifies the offer. FCA will use the proceeds in large part to finance a five-year, €48 billion plan to develop new models, expand production and hike global sales nearly 60% to 7 million units by 2018.