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Ferrari IPO Launches at $52 Per Share
Trading in Ferrari shares begins today on the New York Stock Exchange under the RACE symbol.
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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.
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