Ferrari is ‘days away’ from filing IPO prospectus, says FCA CEO

Article by Christian A., on July 14, 2015

Supercar producer Ferrari SpA is “days away” from filing for a prospectus for the initial public offering, according to Fiat Chrysler CEO Sergio Marchionne. Last Friday, Marchionne talked to reporters after participating in a panel discussion at the Toronto Global Forum.

Fiat Chrysler Automobiles, which has plenty of debt, is spinning off Ferrari to contribute to a 48 billion-euro ($53 billion) investment program that is primarily focused on the global growth of Jeep, Alfa Romeo and Maserati. Insiders said that UBS Group AG was chosen by Ferrari to help it manage its IPO later in the year in New York.

Sources also said that 10% of the shares will be offered to Ferrari’s investors. This will be made possible with the help of JPMorgan Chase & Co. and Goldman Sachs Group Inc. Marchionne won’t confirm if the IPO will be managed by UBS. He said that Ferrari may opt for a second listing, most probably in Milan.

He also said that the company isn’t considering going after General Motors with a hostile bid. What he wants is consolidation, saying that the profitability within the industry won’t be enough to support investment expenses. Both Ford and GM have expressed their disinterest in a merger. Marchionne said that partnering with GM will lead to the highest cost savings.

He explained that there are other possible mergers but these are “less optimal.” The broader market had increased at the close in New York with Fiat Chrysler climbing 3.8% to $14.47. He didn’t comment on Ferrari’s valuation. Earlier in the month, Marchionne said that he predicted the unit to have a value of “at least” 10 billion euros ($11.2 billion), which is equivalent to approximately 60% of the market value of the parent company.

This is considerably higher than what four analysts surveyed by Bloomberg News pegged at 8.7 billion-euro on average. Increasing the profit is critical for Fiat Chrysler to produce enough cash to build the next generation of vehicles and technologies. Marchionne has been taking great efforts to enter a merger with another automaker and share costs but this appears unlikely for now.

If you liked the article, share on:

Topics: ferrari, ferrari ipo, ipo

Comments

Recommended

The battle for supremacy in China among premium SUVs with long wheelbases will soon hot as Mercedes-Benz reveals the long-wheelbase version of the GLC. The new Mercedes-Benz GLC L will...
by - November 19, 2018
At Aston Martin, there is the Valkyrie. In the near future, there might also be a Valhalla. Another name that starts with letter “V,” the Valhalla has just been reserved...
by - November 16, 2018
The up-and-coming Audi E-tron GT four-door sports car is one of the electric cars that the premium carmaker has promised to deliver before 2025. But as early as now, some...
by - November 15, 2018
Magneti Marelli S.p.A., the high-end maker of automotive parts and components, will be soon own by a Japanese company. This comes as it current owner, Fiat Chrysler Automobiles has inked...
by - November 15, 2018
It has already been months since Czech carmaker Skoda unveiled the comprehensively refreshed – both in terms of design and engineering -- Fabia hatchback. Now, the car company will be...
by - November 14, 2018