Chrysler Group will not hold IPO in 2013

Article by Anita Panait, on November 26, 2013

The Board of Directors of Chrysler Group of Chrysler Group has decided that it would not hold its initial public offering this year, according to majority shareholder Fiat SpA.  Chrysler-Fiat chief executive Sergio Marchionne had remarked that the IPO could occur this year. The listing was expected to establish the carmaker's value and help settle a row between Fiat and the VEBA health care trust that controls 41.5 percent of Chrysler.

Fiat said in a statement that it expected Chrysler to work toward an IPO in the first quarter of 2014, but could not say if and when the share sale would happen, since such offer would depend on "market conditions and other relevant considerations." Fiat is aiming to buy out VEBA’s stake in Chrysler, but the parties have been in dispute over the share price.

Chrysler filed IPO documents in late September. Investors had been hoping that the preliminary work for the IPO of 16.6-percent stake of VEBA would determine the price of the Chrysler shares, thereby helping settle the differences between Fiat and the trust and lead to an agreement without actually launching the offering.

According to the Wall Street Journal, Chrysler expects to gain between $1.5 billion and $2 billion in the share sale, which means that the US carmaker would be valued at between $9 billion and $12 billion. Some analysts value Chrysler at around $10 billion.

Topics: chrysler, ipo

If you liked the article, share on:


Login or Create new account to add a comment!


Wondering what the Fantasy Gift in Neiman Marcus’ annual Christmas Book this year could be? If you are generous enough to give others or yourself this special present, then behold...
by - October 24, 2016
It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016