FCA delays Ferrari shares distribution on purpose image

In case you cannot purchase an actual Ferrari model, but still want to be a part of the supercar brand in terms of ownership, due to its upcoming initial public offering, you might do so.

Fiat Chrysler Automobiles is set to put on the market 10% of the Italian brand in the third quarter of 2015. In order to make more money at the end of this year, the rest of Ferrari’s stock will not be distributed for a while longer. The strategy behind FCA’s actions is not too complicated. The world’s seventh biggest automaker will not put out on the market the remaining Ferrari stock to wishful shareholder until the first quarter of 2016. This way, the London-based company will manage to claim 80% of the supercar’s profits for its financial numbers in 2015. Even if FCA has shown the results from its first quarter in 2015, which grew 22% compared to those from the previous year, adding money to the brand’s financial sheet is more than welcomed.

While FCA has not set a date for the IPO, the Prancing Horse’s stock was announced to be traded in the U.S., with a possibility of also reaching the European exchange market. At the moment, FCA owns 90% of the Ferrari brand, leaving Piero Ferrari with 10% of the stock shares, which he is not willing to sell.
FCA is expecting for the entire year to sell around 4.8 to 5 million cars on a global scale and receive $5 billion in adjusted earnings, with $1.3 billion in net profit.

By Gabriela Florea