FCA CEO sees Ferrari IPO midway through 2015 image

Sergio Marchionne, the chief executive of parent Fiat Chrysler Automobiles said that he envisions the initial public offering of luxury sports car manufacturer Ferrari somewhere between the second and the third quarter of 2015.

Marchionne, the architect of the purchase and subsequent unification of Chrysler Group LLC to its parent Fiat SpA recently increased his control over the iconic sports brand by essentially ousting long-time chairman Luca di Montezemolo. Then, FCA’s CEO announced last month the company decided to spin off Ferrari from the main group, offering 10% of the soon to be independent carmaker via a public offering. The rest of the shares would be distributed among the shareholders of Fiat Chrysler Automobiles.

The recently merged automaker, now the world’s seventh-largest carmaker also decided to issue a $2.5 billion convertible bond that should cut debt and further fund the larger capital-raising strategy. FCA needs as much cash as it can get to fund its ambitious five-year business plan that would see profit jump fivefold and sales increased 60% through 2018. Besides making the US unit Chrysler more of a global player, the strategy also includes the long-awaited resurrection of the Alfa Romeo brand and increased production and earnings coming from the luxury division Maserati.

Via Reuters