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.