US: FCA might increase Ferrari’s IPO above planned 10 percent level image

Fiat Chrysler Automobiles NV could ultimately sell more than the planned 10 percent stake through an initial public offering this year on the New York Stock Exchange, said the company’s chief executive, Sergio Marchionne.

The Ferrari division independence strategy has attracted more investors than expected that want to participate in the luxury supercar’s spin off. “The demand is much, much higher” commented chief executive Marchionne on the sidelines of the Geneva auto show. “We should pay attention not to create imbalances.” Last year the seventh-largest automaker in the world showcased a strategy that would see Ferrari spin off, with a 10 percent stake offered to investors through an initial public offering. The parent company would keep the rest of the 80 percent stake and distribute it evenly among its own stakeholders. The rest of the 10 percent share stake is owned by Piero Ferrari, the son of founder Enzo Ferrari.

Marchionne, which last year also became the supercar manufacturer’s chairman, said the IPO stake could be increased to avoid the risk of artificially raising the Ferrari price through high demand – but the pending decision would for sure not involve divesting FCA’s entire stake. The executive added the ongoing plans for Ferrari’s spin off include setting up a holding company registered in the Netherlands and the New York Stock Exchange listing. The strategy would be the same as the one used last year to reunite Italian carmaker Fiat and US subsidiary Chrysler Group to form London-based and Netherlands registered Fiat Chrysler Automobiles.

VIa Automotive News Europe