Mexican Media Brands
Ferrari IPO Launches at $52 Per Share
Trading in Ferrari shares begins today on the New York Stock Exchange under the RACE symbol.
#economics
Share
Trading in Ferrari shares begins today on the New York Stock Exchange under the RACE symbol. Shares are valued at an opening price of $52 each, the top end of the range predicted by owner Fiat Chrysler Automobiles NV.
The pricing implies a market value of nearly $10 billion (€8.8 billion) for the iconic supercar company.
FCA sold 9% of Ferrari through the IPO on Tuesday. It may sell another 1% if demand for the shares is strong enough. The company will distribute 80% of Ferrari shares next year to current FCA shareholders at a ratio of one Ferrari share for every 10 FCA shares they hold. The final 10% of Ferrari will continue to be held by Pietro Ferrari, son of the founder.
Proceeds from the IPO are expected to be roughly $4 billion (€3.5 billion). FCA CEO Sergio Marchionne, who also is chairman of Ferrari, plans to use the funds to help pay for FCA’s five-year, $60 billion product and marketing plan.
The push aims to hike FCA’s global sales from 4.4 million vehicles to 7 million units—including a 48% jump to 3.1 million units in North America—by 2018.
RELATED CONTENT
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.