Ferrari’s Formula One racing team has made an on the spot return to the front line of the grid as the luxury supercar manufacturer is getting ready to become independent and list some of its shares on the New York Stock Exchange.
Its parent, Fiat Chrysler Automobiles, through the voice of its chief executive officer Sergio Marchionne, announced it had decided to spin off Ferrari into an independent company, with around 10 percent of the shares listed on the New York Stock Exchange through an Initial Public Offering, while the rest would be distributed among existing FCA stakeholders. Also, last year Marchionne became the Ferrari chairman after the long-running predecessor, Luca di Montezemolo was driven away because of the poor racing results and the desire to keep Ferrari’s car production capped to maintain exclusivity.
Now, after years of sliding from the front row of the grid, Ferrari, the planet’s most successful motor racing team has not been out of a podium placement in each of the first five grand prix races for the season – and in Malaysia in March driver Sebastian Vettel ended a moral-killing run of 34 races without a victory. The racing recovery could provide a much needed boost for FCA CEO Marchionne’s endeavor to convince potential investors of Ferrari’s worthiness, as he eyes a valuation of more than ten billion euros. So far bankers believe the luxury carmaker could bring in anywhere between four and ten million euros when its IPO becomes official.