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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.
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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%.
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