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
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
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 Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data