Mexican Media Brands
IPO Could Value Ferrari at €11 Billion
Fiat Chrysler Automobiles NV may value its Ferrari SpA supercar unit as much as €11 billion when it sets a price range for the initial public offering it plans early next year, sources tell Bloomberg News.
#economics
Share
Fiat Chrysler Automobiles NV may value its Ferrari SpA supercar unit as much as €11 billion when it sets a price range for the initial public offering it plans early next year, sources tell Bloomberg News.
Pricing for the IPO could be announced as early as today. FCA plans to offer 10% of Ferrari as part of a spinoff scheme to raise capital for the parent company's ambitious product development schedule. Ferrari Chairman and FCA CEO Sergio Marchionne has claimed the iconic marque should trade at a "luxury multiple" akin to those enjoyed by Hermes or Prada.
Doing so would roughly double Ferrari's valuation as a conventional carmaker. One of Bloomberg's sources says the unit is likely to be valued at 12-14 times its expected pretax earnings for 2015. Last year Ferrari's earnings before interest, taxes, depreciation and amortization was nearly €700 million, and profits in the first half of this ear climbed 9%.
RELATED CONTENT
-
Achieving Efficiency?
A look at on-road fuel economy changes over 92 years.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.