Ferrari priced its initial public offering (IPO) at $52, helping raise $893 million.
The Italian automaker’s IPO was priced in New York on Tuesday at the top end of its indicated $48 to $52 per share range. The IPO also gives Ferrari a market capitalization of around $9.8 billion with shares trading upwards by midday to $56.32. Including the debt Ferrari will take on from parent company Fiat Chrysler, the automaker will have an enterprise value of about $12 billion.
To celebrate Ferrari’s IPO, FCA CEO and Ferrari Chairman Sergio Marchionne rang the opening bell at the New York Stock Exchange with other executives including vice chairman and son of Enzo Ferrari, Piero Ferrari. Fittingly, Ferrari shares are trading under the symbol RACE.
FCA will raise more than $4 billion from taking Ferrari public, despite limiting the offering to a 9.1 percent stake in the company. Investors’ demand for the shares greatly exceeded the number available. The company plans to distribute the remaining 80 percent stake to its own investors early next year while Piero Ferrari will retain his 10-percent holding.
Cash from the IPO will be vital to Fiat Chrysler, helping the company finance a $54.45 billion investment program to expand the Jeep, Alfa Romeo and Maserati brands.
[Source: Automotive News]
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