Fiat May Sell €800 Million in Stock

Fiat SpA is expected to sell about 104 million shares when it lists the newly formed Fiat Chrysler Automobiles NV on the New York Stock Exchange next month, Bloomberg News calculates.

The stock will consist of 60 million shares purchased from shareholders who declined to convert their holdings into shares of FCA, plus some 44 million shares held by Fiat in treasury. Bloomberg says the combined inventory is worth about €800 million.

Fiat will offer the buyout shares to existing Fiat shareholders at €7.73, the same exit price it paid. Stockholders will be permitted to buy at a rate of one share for every 19.35 already held, according to the company.

Shares in Fiat will be converted 1:1 to FCA stock when the new company becomes listed in New York. CEO Sergio Marchionne has said the company does not intend to issue additional shares.