It appears the legendary Ferrari name is still enough to make the racy sports car producer enticing enough to investors as to reach its envisioned initial public offering value, even as VW’s diesel scandal has made auto stocks less tempting.
According to sources that asked not to be identified as the proceeds are still private, Ferrari has talked to potential shareholders and is en route to accomplish its goal of hitting a 10 billion euro ($11.2 billion) value envisioned as the threshold by chief executive officer Sergio Marchionne. That was the bill called before the VW “dieselgate” broke out and even as holdings are offloading numerous auto stocks now the initial interest in the Ferrari IPO was actually 10 times above the available share percentage, added one of the sources. Sergio Marchionne is Ferrari’s chairman and the chief executive officer of parent company Fiat Chrysler Automobiles and he was bullish for months claiming the sports car brand would be treated more like a luxury-goods maker, such as Prada, rather than a traditional auto manufacturer.
According to the sources, a price range for the stock has not been set yet and Ferrari is now ironing out the final details ahead of the envisioned debut on the New York Stock Exchange during the second part of the month. The IPO comes after European automakers have seen around $50 billion off their market value wiped off since September 18 when the VW dieselgate scandal broke out – the company acknowledged some of its diesel cars were rigged with software that allowed them to cheat US emissions tests.
Via Automotive News Europe