Ferrari SpA, the ultra-luxury sports car manufacturer being spun off by its parent Fiat Chrysler Automobiles into an independent company, will use UBS Group AG to manage its upcoming New York stock initial public offering.
The report comes courtesy of Bloomberg, which has cited people that have knowledge with the proceeds, though they opted to remain anonymous as they are not allowed to speak to the media ahead of a formal announcement. According to comments made last week by Fiat Chrysler Chief Executive Officer Sergio Marchionne, the approaching listing might take the value of Ferrari above 10 billion euros ($10.97 billion). Citing the same sources, Ferrari, which is going to sell 10 percent of its stock to interested investors, will also receive help from JPMorgan Chase & Co and Goldman Sachs Group Inc. Fiat Chrysler has decided to spin off Ferrari into an independent company, offering 10 percent of its stock in New York and the rest being equally distributed among existing FCA shareholders. FCA said last November that after the planned independence of Ferrari the company’s own net industrial debt could drop by around 715 million euros.
FCA has planned last year, through a five-year turnaround business plan, to invest 48 billion euros ($52.63 billion) during the next half decade to skyrocket Jeep, Maserati and Alfa Romeo to global levels in a bid to properly compete against the likes of Volkswagen Ag and BMW AG. The company envisions a stronger position in the fast paced and high-margin sector of luxury autos, having almost completely abandoned the massive development of mass-market brands such as Lancia.