Ferrari chooses UBS Group to manage New York IPO

Article by Andrew Christian, on July 8, 2015

UBS Group AG will be managing the initial public offering of Ferrari SpA in New York later in the year, according to sources. Fiat Chrysler Automobiles is spinning off the supercar producer Ferrari. These sources also told Bloomberg that other companies that will participate in selling off 10% of the shares are JPMorgan Chase & Co. and Goldman Sachs Group Inc.

There has not been official announcement yet of this offering. None of the companies involved have also issued statements about this rumor. Ferrari is being spun off to contribute to Fiat Chrysler’s investment program that amounts to 48 billion-euro ($52.5 billion).

This program is intended for the global expansion of Jeep, Alfa Romeo and Maserati. CEO Sergio Marchionne anticipates for Ferrari’s valuation to be “at least” 10 billion euros -- equivalent to around 60% of the market value of the parent company.

Marchionne has a8.7 billion euros target figure that is higher than the average of the four analysts that Bloomberg talked to. Aside from the IPO, Fiat Chrysler is planning to distribute the 80% that’s left to its own investors. This means that by 2016, Ferrari will be an independent entity.

The 10% that remains is owned by Piero Ferrari, the son of Enzo Ferrari (the founder of the company). Last week, Marchionne said that Ferrari is planning to list on the New York Stock Exchange. It will be organized as a Dutch holding company with a UK fiscal residence.

This is very similar to Fiat Chrysler’s multi-national structure. The auto operations of Ferrari will still be based at Maranello in northern Italy, which is also where it will pay taxes. The listing was initially scheduled for June but because of tax issues, it was delayed until October 13 at least.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Mercedes-Benz Vans, one of the world’s top van makers, has just launched adVANce, which is their strategic transport industry initiative for the future. With this, the division analytically considers its...
by - September 29, 2016
In 2007, when Nissan first introduced the R35 Nissan GT-R at the 2007 Los Angeles Auto Show, the car carried with intense power and a price tag of $78,000. Up...
by - September 29, 2016
Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016