In a signal the saying that Ferrari doesn’t sell cars, but dreams, could be true, the Italian luxury automaker could harness a valuation of up to $9.8 billion once the initial public offering in the US kicks off at a price range of between $48 and $52 per share.
Parent company Fiat Chrysler Automobiles NV, the third biggest US automaker and the seventh largest in the world, is getting ready to launch Ferrari’s New York Stock Exchange IPO where up to 10 percent of the company would be sold. The gathered proceedings would be used to finance the ambitious masterplan laid out last year that seeks to reach deliveries of 7 million cars worldwide by 2018, and with enough profit and financial power to fend off competitors such as Daimler or Volkswagen Ag. The price range has been made official on Friday and might fall in line with FCA CEO Sergio Marchionne’s own belief that Ferrari was worth north of ten billion dollars while analysts only acknowledged around half.
A successful IPO would also be crucial to Marchionne’s drive to find a prospective partner – such as larger US competitor General Motors – to prop the development costs and the auto industry’s expansion towards cleaner and “smarter” autos. In a prospectus filed with the US market regulator, Ferrari announced it would offer 17.2 million shares through the initial public offering – which is around nine percent of the total holding. Another 1.7 million shares could be sold through the greenshoe option, lifting the total to a 10 percent holding. With a Wall Street debut expected for the latter part of October, the “prancing horse” brand that is most famous for its Formula One implication might hit the New York Stock Exchange under the symbol “RACE”.