Ferrari selects their NYSE symbol for IPO

Ferrari selects their NYSE symbol for IPO image

Text: Marcus De Guzman / Photos: Ferrari | posted October 13, 2015 17:55

Ferrari launches their IPO, aims to sell nearly 17.2M common shares

Purchasing shares of Ferrari will soon be available after parent company Fiat-Chrysler Automobiles (FCA) recently announced the brand's initial public offering (IPO).

FCA intends to sell 17,175,000 common shares (equivalent to approximately 9%) under its new subsidiary, New Business Netherlands (to be renamed Ferrari N.V.). Initial price of the IPO is expected to average between $48 to $52 (about PhP 2.2k to PhP 2.4k) per share.

Ferrari has already applied to its common shares on the New York Stock Exchange (NYSE) and the shares will trade under the symbol 'RACE'.

FCA however expects that the backers will expect the option of being able to buy group of shares of up to 1,717,150 common shares. After which, FCA will own 80% of Ferrari if the underwriters do choose to get additional shares in full.

Ferrari reminded those that are interested in acquiring shares that the company itself is not selling any shares nor will they receive any proceeds from the sales of FCA. The IPO will be a part of a series of transactions that will separate Ferrari from FCA. In addition, FCA also hopes to sell the remaining 80% interest in Ferrari to their shareholders at the start of 2016.

Acting as the global coordinator for the offering will be Swiss financial company UBS Investment Bank. On the other hand, UBS Investment and Bank of America Merrill Lynch will serve as the main bookrunners and representatives of the benefactors. Other financial institutions such as J.P. Morgan, Allen & Company LLC and Banco Santander will also be acting as bookrunners for the offering.