The ultra-luxury Italian sports car manufacturer is gearing up for its approaching New York Stock Exchange listing, which is being used by parent Fiat Chrysler Automobiles as a way to fund its ambitious 48 billion euro ($53 billion)investment strategy.
FCA, the third largest US automaker and the seventh biggest in the world, has announced the iconic brand Ferrari, a marquee equally famous for its “prancing horse” logo and the winning Formula One team, had filed the necessary papers requesting to US regulators to approve a New York initial public offering. The Maranello, northern Italy-based automaker could be valued by interested investors to more than 10 billion euros, said Sergio Marchionne, FCA chief executive and Ferrari chairman – though certain analysts are more skeptical and envision just half that. Fiat Chrysler, while parent of brands with pedigree such as Jeep, Alfa Romeo or Maserati, is entrenched in debt and needs ample funds to assist the financing work for its turnaround plan that includes sales jumping 60 percent to around seven million autos by 2018, as well as a five-fold increase of the profit.
FCA announced last year it would sell off 10 percent of Ferrari through the approaching initial public offering, with the rest being redistributed among the group’s existing shareholders. The IPO is expected to take place after the second half of October and the separation would be complete in the beginning of next year. Just like it did when establishing FCA NV, Ferrari will be turned into a Dutch-registered holding company with shares listed on Wall Street, read a filling to the U.S. Securities and Exchange Commission.