Ferrari files for long-awaited IPO
Luxury sports carmaker Ferrari N.V. on Friday filed papers for its long-awaited initial public offering (IPO), and set a price range for the shares that could value the company at around $10 billion.
According to papers filed with the Securities & Exchange Commission (SEC), Ferrari will market nearly 17.2 million shares, with a price tag ranging from $48 to $52 apiece.
However, the Italian carmaker will not receive any proceeds from the $859 million IPO because the proceeds will mostly go to parent firm Fiat Chrysler Automobiles, which decided to move forward with its plan to spin off the luxury carmaker at the midpoint of the marketed range.
Following the offering, Fiat Chrysler will maintain an 80 per cent stake in Ferrari and will distribute the remaining stake among its investors by 2016.
Ferrari, which produced its first car in 1947, sold a 50 per cent stake to Fiat in the 1960s. Fiat increased its stake to 90 per cent after founder Enzo Ferrari died in 1988. The founder's son, Piero Ferrari, now holds the remaining 10 per cent stake, which he will retain after the I.P.O.
Ferrari produces and sells only a small number of cars every year. Last year, it sold just over 7,000 cars, a tactic that the company has been using to maintain a reputation for exclusivity. However, the same tactic also limits the company's revenue and profit growth.
New Zealand News
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