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6 must-know facts about the Ferrari IPO

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Fiat Chrysler Automobiles, the parent company of Ferrari, announces that it will move forward with its plan to put approximately ten per cent of its shares on the New York Stock Exchange.

According to media reports, Ferrari will be valued at roughly $9.4 billion at an IPO (Initial Public Offering), when Fiat Chrysler Automobiles sells the stake.

Here are six essential facts about the IPO according to a release by Ferrari as well as global news reports:

  1. Ferrari will market approximately 2 million common shares for $48 to $52 each, equal to roughly nine per cent of Ferrari’s common shares, pursuant to a registration statement on Form F-1 filed with the US Securities and Exchange Commission (SEC)
  2. The luxury car manufacturer will not receive any of the proceeds from the $859 million IPO at the midpoint of the range; the proceeds will mostly go to Fiat Chrysler
  3. Fiat Chrysler will maintain an 80 per cent stake in the brand after the offering and plans to distribute the rest to its investors by 2016
  4. Ferrari only shipped 7,255 cars last year, to maintain its concept of exclusivity
  5. For the six months through June 2015, net revenue increased by 2.8 per cent from the same period in 2014 and net profit rose by ten per cent
  6. One of Ferrari’s main sources of marketing is its Formula One racing team, which has taken home the trophy for 224 Grand Prix races and represented 15 World Drivers’ Championships since Formula One began in 1950

First published on Kippreport, sister publication of Luxurymena.

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