Citing sources, Reuters reported that Fiat S.p.A. has been approached by several investment banks with a proposal for Ferrari to be listed on the Hong Kong stock exchange. Some analysts say that Ferrari could be valued as high as $6.3 billion in an initial public offering. This would enable Fiat to raise funds to reduce its debt of about 5 billion euros ($7.2 billion).
In addition, the valuation of Fiat’s shares may get a boost. One source said that talks are ongoing with the banks but that Fiat has yet to decide about the IPO. Fiat hasn’t commented about these rumors yet.
Notably, Fiat CEO Sergio Marchionne has stated several times (the latest of which was last week) that a Ferrari IPO "is not on the table" at this time. In 2010, Fiat said that it was looking into the possibility of an IPO for Ferrari as a strategic option. Since then, the speculations have grown.
But while sources have divulged that the IPO is a real possibility, Ferrari Chairman Luca Cordero de Montezemolo and Marchionne have not made any statement to support it. In the last couple of years, Hong Kong had been the top global destination for IPOs.
Global brands like cosmetics company L'Occitane International and luggage maker Samsonite International SA have decided on Hong Kong due to its top valuations and rich investors. Last June, Prada SpA raised almost $2.5 billion. The fashion house is the first Italian company to go public in Hong Kong.