Shares in Fiat Chrysler Automobiles (FCA) fell more than 3 per cent in early trade on Wednesday, after the flotation of its luxury unit Ferrari was priced at the top end of the range but below the expectations of some investors.

Maranello-based Ferrari is set to debut on Wall Street later on Wednesday.

FCA is selling up to 10 per cent of the maker of red supercars bearing the prancing horse emblem at $52 per share, the top end of a range between $48 and $52, assigning Ferrari a stock market value of $9.8 billion.

Press reports in recent days had suggested the offer could have been priced at up to $60 a share.

Broker Banca Akros said that while the higher expectations may initially impact FCA shares, it expected Ferrari to "have a good start, thus pushing the FCA share price up in the latter part of the trading day".

FCA shares, which had risen on Tuesday to their highest in more than two months, were down 2.4 per cent at 13.88 euros by 0742 GMT, underperforming a 0.4 per cent fall in Milan's blue-chip index.

FCA, which owns 90 per cent of Ferrari, is set to raise $893 million through the offering, which could rise to $982 million if demand is strong enough for the exercise of a "greenshoe" option of additional shares.

Proceeds of the offering will be used to help fund FCA's 48 billion euro turnaround plan, centred around the revamp of its Alfa Romeo, Jeep and Maserati brands, as it seeks to boost global sales to 7 million cars by 2018.

A successful listing will bolster FCA's finances at a time when its calls for a merger partner have fallen on deaf ears.

FCA will distribute the rest of its stake in Ferrari to its own shareholders when it is spun off early next year. ($1 = 0.8794 euros)

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