Chief executive officer Sergio Marchionne, in charge of Ferrari’s parent company Fiat Chrysler Automobiles NV, has disclosed that the ultra-luxury carmaker’s planned initial public offering will be postponed until after October 12.
The chairman of Ferrari, Sergio Marchionne, also the chief executive officer of Italo-American transnational company FCA NV, the seventh largest automaker in the world, has said the planned initial public offering of the brand will not be possible until after October 12 because of tax problems. FCA initially envisioned the stake sale – which is of ten percent of the carmaker – would be promoted towards the first half of the year, but was then unable to fulfill the promise and moved on with the date towards the third quarter of 2015. FCA CEO Marchionne recently said the share sale would not be possible now before October 12 due to unknown tax issues that only surfaced during the latter period. He added that at least one year is needed between the creation of parent company Fiat Chrysler Automobiles – the automaker started trading on the New York Stock Exchange on October 13 last year – and any new share listings.
The news of the new delay have further dragged down the shares of the parent company, which were down 3.3 percent after the announcement. The listing has been envisioned as a way to gather resources for the growth strategy envisioned by FCA for the upcoming half decade period, with 10 percent of Ferrari offered to interested investors on Wall Street and the rest distributed among existing FCA shareholders.