Fiat Chrysler Automobiles NV will try to sell a 9 percent stake in the Italian supercar manufacturer in order to cover some debts. $9.82 billion will be the Ferrari value in an initial public offering.
The cutoff of Ferrari from parent company, Fiat Chrysler, is a way for Fiat’s Chief Executive Officer Sergio Marchionne to raise funds to pay out debts and finance a $54.5 billion investment program on expanding other brands like Jeep, Alfa Romeo and Maserati. $3,2 billion will be deducted from the debt of the company, according to Bloomberg.com.
This means that the Ferrari value, including that debt, will raise to $12 billion. The sale will consist of 17.2 million shares of Dutch holding company Ferrari NV at $48 to $52 each, according to a filing Friday with the U.S. Securities and Exchange Commission, states the same source.
The shares will trade on the New York Stock Exchange under the symbol RACE. Piero, the son of the founder Enzo Ferrari, will also get a piece of the Ferrari value: $320 million to be exact.He will also keep a 10 percent stake after
the separation of the Italian supercar manufacturer.
Ferrari’s earnings before interest and taxes in 2014 amounted to 389 million euros on 2.8 billion euros of revenue. This data may have convinced investors to remain unmoved by recent Volkswagen scandal and to bid for every Ferrari share.
CEO Amedeo Felisa said in a statement last month that Ferrari will seek to increase the number of cars produced to up to 9,000 vehicles by 2019 ( compared to 7,255 cars delivered last year). Felisa also said that Italian supercar manufacturer will not depart from its old ways of producing only high-end sports cars, in contrast to its rivals.
After this news, two questions are on everybody’s lips: will the Ferrari value increase after this separation and, most importantly for buyers, will there be any big changes for the Italian brand? Well, I guess we will wait and see.