Ferrari IPO Priced at $52, Raises $893M, Company Valued at $12B
Ferrari priced its initial public offering (IPO) at $52, helping raise $893 million.
The Italian automaker’s IPO was priced in New York on Tuesday at the top end of its indicated $48 to $52 per share range. The IPO also gives Ferrari a market capitalization of around $9.8 billion with shares trading upwards by midday to $56.32. Including the debt Ferrari will take on from parent company Fiat Chrysler, the automaker will have an enterprise value of about $12 billion.
To celebrate Ferrari’s IPO, FCA CEO and Ferrari Chairman Sergio Marchionne rang the opening bell at the New York Stock Exchange with other executives including vice chairman and son of Enzo Ferrari, Piero Ferrari. Fittingly, Ferrari shares are trading under the symbol RACE.
SEE ALSO: Ferrari Increasing Production 30 Percent by 2019
FCA will raise more than $4 billion from taking Ferrari public, despite limiting the offering to a 9.1 percent stake in the company. Investors’ demand for the shares greatly exceeded the number available. The company plans to distribute the remaining 80 percent stake to its own investors early next year while Piero Ferrari will retain his 10-percent holding.
Cash from the IPO will be vital to Fiat Chrysler, helping the company finance a $54.45 billion investment program to expand the Jeep, Alfa Romeo and Maserati brands.
[Source: Automotive News]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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