Ferrari valued at nearly $10 bn for IPO

The US IPO of 17.2m shares – at the planned price range of $48 to $52 per share – is roughly 9pc of parent company Fiat (Hanover: FIA1.HA – news) Chrysler Automobiles ‘ stake.

FCA chief executive Sergio Marchionne earlier this year claimed the Prancing Horse brand should be worth at least 10 billion euros (~$11.3 billion USD).

The stock sale is set to be oversubscribed as investors remain unconcerned by the Volkswagen AG diesel-emissions testing scandal that has hurt mass-market automaker stocks, people familiar with the matter said late last month.

Fiat shares jumped in New York and Milan – they are “accelerating following Ferrari’s race to Wall Street”, Bloomberg quoted one commentator as saying.

Ferrari ‘s stock market flotation is expected to raise as much as $900m, valuing the Italian auto maker at $9.92bn. Profit rose 8.9 percent in the first half of 2015.

Luxury auto maker Ferrari is not selling common shares and this offering is meant to be part of a series of transactions to separate Ferrari from FCA. He will keep a 10% stake after the separation of Ferrari. FCA and Ferrari haven’t yet priced the offering, but that’s expected soon, possibly as early as Friday, according to Bloomberg. The popularity of those cars has led to the racing and automotive legend that Ferrari is today, and that legend has grown since the death of Enzo Ferrari in Y 1988.

Ferrari’s earnings before interest and taxes a year ago amounted to €389 million on €2.8 billion of revenue as the company delivered 7,255 of its iconic supercars. Last year, Ferrari shipped 7,245 cars.

Ferrari added Allen & Co LLC, BNP Paribas, J.P. Morgan and Mediobanca to its list of underwriters that include Banco Santander, BofA Merrill Lynch and UBS Investment Bank.