The IPO from Ferrari is priced at $52. In such a way it helps to raise $893 million.
The initial public offering from the Italian producer has received its price in NY this Tuesday at the highest point of its assumed $48 to $52 per share range. The offering allows the automaker to have a market capitalization of almost $9.8 billion. Meanwhile shares trade upwards to $56.32 by midday. Along with the debt the producer will pick up from Fiat Chrysler, the parent company, it will have to enterprise value of nearly $12 billion.
The chairman at Ferrari and FCA CEO decided to celebrate the Italian company’s IPO. Sergio Marchionne rang an opening bell at the NY Stock Exchange together with vice chairman Piero Ferrari (the son of Enzo Ferrari). The automaker’s shares are trading symbolically under the name RACE.
Taking Ferrari public, FCA will increase its profits by more than $4 billion do not paying attention to limiting the vehicle to a 9.1% stake in the brand. There is a greatly exceeded demand of the investors for the shares. The automaker is going to provide its own investors with the remaining 80% stake. This will happen at the beginning of 2016. Piero Ferrari will preserve his 10% holding.
Money from the IPO will be very necessary to Fiat Chrysler. A $54.45 billion investment program will give it a chance to expand Maserati, Jeep and Alfa Romeo products.