Piero Ferrari, the son of legendary luxury sports car company founder Enzo Ferrari, announced recently there are no plans to sell the family owned stake of ten percent they hold in the eponymous supercar manufacturer.
Fiat Chrysler Automobiles, the parent company of Ferrari SpA, announced last year that it plans to position the luxury automaker as a standalone company, aiming to attract the same investors that buy shares in luxury goods companies. To do so, the company plans to spin off the luxury division and offer part of its stake through an initial public offering sometimes later this year. In doing so, around 10 percent would be offered on the New York Stock Exchange as part of the IPO to interested investors. The rest of the stake – 80 percent – would be divided among FCA stakeholders according to their own share portions. Another ten percent remains in the possession of the Ferrari founding family. “I have never sold and I have no intention of doing so,” commented Piero Ferrari on the sidelines of an event.
FCA Chief Executive Sergio Marchionne, also Ferrari’s new chairman after the long-running executive Luca di Montezemolo stepped down last year, said last month the planned spin off and initial public offering of Ferrari would be finished this year for sure, though it’s still subject to regulatory approvals. The luxury sports car manufacturer is one of the most valued luxury automakers in the world, with earnings margins that are only bested by Germany’s Porsche. On the other hand, FCA needs to gather more cash to fund its ambitious five-year strategy laid out last year that calls for investments of tens of billions into new products to drive up sales.