Comments
Italian luxury carmaker Ferrari expects its US initial public offering to be priced in a range of between $48 and $52 per share, which could value the company at up to $9.8 billion, it said.
Parent Fiat Chrysler Automobiles (FCA) will sell up to 10 per cent of Ferrari in the IPO and will use proceeds to help pay for its own ambitious turnaround plan to boost global sales to 7 million cars by 2018, and compete with rivals such as BMW and Volkswagen.
The price range, announced in the IPO prospectus, may satisfy FCA Chief Executive and Ferrari Chairman Sergio Marchionne, who has said Ferrari was worth at least €10 billion ($11.4 billion). Some analysts had said it could be just over half that.
A successful IPO would be particularly important for Marchionne as his attempts to merge FCA with US rival General Motors to share costs of developing cleaner and more "intelligent" vehicles have fallen on deaf ears.
Greenshoe optionIn the prospectus filed with the US market regulator, Ferrari said it would offer 17.2 million shares in the IPO, equal to around a 9 per cent stake in the sportscar maker.
An additional 1.7 million shares may be sold if the greenshoe option is exercised, it added, raising the size of the total offering to a 10 per cent stake.
FCA could raise up to $982 million through the offering.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.