Banks approach Fiat with proposal to list sports Ferrari on the Hong Kong stock exchange

Article by Christian A., on September 4, 2011

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.

Topics: ferrari, ipo

If you liked the article, share on:

Comments

Recommended

The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
As it is now, Nissan Motor’s Nismo road car operations is a relatively a small business, with an annual volume of 15,000 performance-oriented cars. However, Nissan is giving Nismo fans...
by - May 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries