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Ferrari’s Limited IPO Is Oversubscribed
Demand for the 10% of Ferrari SpA being publicly offered by Fiat Chrysler Automobiles NV far outstrips the shares available, sources tell Bloomberg News.
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Demand for the 10% of Ferrari SpA being publicly offered by Fiat Chrysler Automobiles NV far outstrips the shares available, sources tell Bloomberg News.
The books on the initial public offering will close Monday afternoon. A final price for the shares will be set late Tuesday, and trading will begin on Wednesday, according to Bloomberg’s sources. FCA plans to distribute the balance of Ferrari shares to its own investors in early 2016 as it spins off the iconic supercar maker.
FCA indicated in a U.S. regulatory filing earlier this month that it aims to sell about 18.9 million shares at $48-$52 (€42-€46) each. The IPO is expected to generate at least $4 billion (€3.5 billion).
FCA intends to use the funds to reduce debt and help bankroll an ambitious product development plan intended to boost sales.
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