Report: Ferrari IPO raises $893M, shares priced at $52 each

Report: Ferrari IPO raises $893M, shares priced at $52 each
Ferrari N.V. IPO rakes nearly US$900M, public trading to being next Wednesday
Both Ferrari and Fiat Chrysler Automobiles (FCA) will be quite busy for the next few days after Bloomberg reported that the Italian automaker's initial public offering (IPO) raised a staggering US$893M (about PhP 41.43B).
Its subsidiary, Ferrari N.V., priced the share at the top end of the market after investor demand in the Italian brand surpassed the available stock. Major stakeholder and soon-to-be-former parent company FCA, valued the 17.18 million shares at US$52 (about PhP 2.4k) each.
Trading of Ferrari shares will begin on Wednesday, October 28 at the New York Stock Exchange (NYSE). As a reminder, the shares will be listed under the symbol RACE. Attending the symbolic ringing of the opening bell will be Ferrari Chairman/FCA CEO Sergio Marchionne, Vice Chairman Piero Ferrari and FCA Chairman John Elkann who will be Ferrari's biggest stakeholder after the spinoff from the Italian-American company.
Since investor demand will likely outweigh the available shares once more, FCA will be limiting the stock on sale as a way to keep Ferrari's exclusivity, mirroring the automaker's limited number of production cars. Moreover, FCA still plans to distribute its remaining 80% stake in Ferrari to their investors in early 2016.
Bloomberg also reported that FCA will be able to raise more than US$4 billion (about PhP 185.56B) by taking Ferrari public and will still have 1.72 million shares as extra allowance for their backers. There will even be US$3.2 billion in additional funds before next year's spinoff.
This comes as a benefit for Ferrari as the company will reportedly increase its annual production from 7,000 cars to 9,000 cars by 2019. However, this may not sit well for Ferrari owners and collectors who have always relied on the brand's exclusivity.
Ferrari maintained however that they will still be a 'sought after' brand as they will deliberately monitor and maintain production volumes and wait delivery times. Production of limited-run models will also continue.
Source: Bloomberg
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