Fiat Chrysler Ready to Move Forward with Ferrari IPO [News]

Ferrari NV filed papers on Friday for an initial public offering (IPO) in the United States, which could be launched as early as mid-October, and could value the luxury vehicle maker at $9.82 billion.

In its filing with the US Securities and Exchange Commission (SEC), FCA said it is offering to sell 17.2 million common shares of Ferrari, or about 9.0 percent of its capital.

FCA, which owns around 90pc of Ferrari, is planning to distribute the rest of its stake to its shareholders.

Including that particular debt, Ferrari would have a value of close to $12 billion. The remaining 10% of the new company will continue to be held by Piero Ferrari, son of Ferrari founder Enzo Ferrari. The Italian marque will be traded under the symbol “RACE” on the New York Stock Exchange. Ferrari will subsequently issue a projected €2.1bn in debt to third parties, including which its valuation will stand at $12bn. Last year, longtime Ferrari Chairman Luca di Montezemolo stepped down, replaced by FCA CEO Sergio Marchionne.

Analysts are predicting a huge oversubscription in the IPO itself, with many estimates pointing to a demand of over 10 times the original amount of shares offered, with many auto investors throughout Europe remaining unfazed by Volkswagen’s diesel emissions scandal.

Ferrari shipped a mere 7,255 cars past year, a tactic the company uses to cultivate a reputation for exclusivity. Piero will also receive 280 million euros in cash after the separation of Ferrari from Fiat Chrysler, Bloomberg reported.

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.