21-10-2015, 07:48 AM
Ferrari prices IPO at top of range
[Image: 615204-ff5bdcd2-7778-11e5-84c7-74266c47d5ee.jpg]
The float values car maker Ferrari at about $US10 billion Source: AFP
[b]Ferrari, the inimitable Italian luxury sports car maker, earned a strong $US52-a-share price for its initial public offering in New York, a banking source said.[/b]
Coming in at the high end of its predicted range, the pricing suggests substantial demand for Ferrari shares and an endorsement by Wall Street of owner Fiat Chrysler’s plan to value the niche high-end carmaker at around $US10 billion.
Underwriters offered 17.2 million shares of Ferrari, comprising about nine per cent of the company. Fiat Chrysler had previously said it expected to price the offering at between $US48 and $US52 a share.
Fiat Chrysler has envisioned the IPO as the first step in a complete spin-off of the hallowed Ferrari brand.
Fiat Chrysler, which owns about 90 per cent of Ferrari, plans to invest some $US48 billion to expand its total worldwide sales to seven million vehicles per year, largely through the development of its Jeep, Alfa Romeo and Maserati brands.
Ferrari also expects to expand branding efforts around its famed prancing stallion logo in sportswear, watches, accessories, consumer electronics and theme parks.
Shares begin trading tonight (AEDT) under the RACE ticker. Underwriters may offer an additional 1.7 million shares, depending on demand.
AFP
- AFP
- OCTOBER 21, 2015 9:17AM
[Image: 615204-ff5bdcd2-7778-11e5-84c7-74266c47d5ee.jpg]
The float values car maker Ferrari at about $US10 billion Source: AFP
[b]Ferrari, the inimitable Italian luxury sports car maker, earned a strong $US52-a-share price for its initial public offering in New York, a banking source said.[/b]
Coming in at the high end of its predicted range, the pricing suggests substantial demand for Ferrari shares and an endorsement by Wall Street of owner Fiat Chrysler’s plan to value the niche high-end carmaker at around $US10 billion.
Underwriters offered 17.2 million shares of Ferrari, comprising about nine per cent of the company. Fiat Chrysler had previously said it expected to price the offering at between $US48 and $US52 a share.
Fiat Chrysler has envisioned the IPO as the first step in a complete spin-off of the hallowed Ferrari brand.
Fiat Chrysler, which owns about 90 per cent of Ferrari, plans to invest some $US48 billion to expand its total worldwide sales to seven million vehicles per year, largely through the development of its Jeep, Alfa Romeo and Maserati brands.
Ferrari also expects to expand branding efforts around its famed prancing stallion logo in sportswear, watches, accessories, consumer electronics and theme parks.
Shares begin trading tonight (AEDT) under the RACE ticker. Underwriters may offer an additional 1.7 million shares, depending on demand.
AFP