Fiat Chrysler Automobiles could sell up to $830 million of shares after IPO

Article by Christian A., on October 12, 2014

Fiat Chrysler Automobiles could sell as much as $830 million of shares following its initial public offering in New York, according to calculations made by Reuters. The merger of Italian carmaker Fiat and American group Chrysler will have its shares registered and start trading on October 13, 2014, Monday at Wall Street.

The carmaker’s chief executive, Sergio Marchionne, remarked he could "get the machine rolling" by selling the shares Fiat owns in itself – the so-called treasury stock – to investors in the United States. Fiat could likewise sell shares to offset those brought back from investors who opted out from the merged company.

There are worries that FCA may struggle to create enough liquidity for its shares in the US, as the company will still have a secondary listing in Milan. Marchionne, however, expressed confidence that Chrysler's high-profile name in the US should help attract interest to the newly formed company.

Fiat recently disclosed that investors who sold out their shares after deciding not to be part of the new company left around 53.9 million shares, which are to be cancelled under Italian laws. FCA will not offer those shares and will pay the cash exit price of EUR7.727 ($9.845) each.

Since those shares could be reissued, Marchionne said Fiat will sell the equivalent of those shares on Wall Street. Fiat also owns another 34.6 million shares in treasury stock.

This means that FCA may issue and sell around 88.5 million shares valued at EUR650 million ($830 million). Marchionne, however, said that the timing for selling both type of shares would be determined after the evaluation of all risks.

If you liked the article, share on:

Comments

Recommended

What can we expect from Mercedes-Benz for this year and the next? It seems all matters have been laid out with luxury carmaker’s vehicle lineup for 2017 and 2018. As...
by - September 19, 2017
It was in February when Ford revealed the new Fiesta ST, just before it made its official debut at the 2017 Geneva Motor Show in March. But it is not...
by - September 19, 2017
If you search for the word "grille" on the dictionary, what you will get is a definition that says "a grating forming a screen or barrier, or an ornamental one...
by - September 19, 2017
We recently heard that Italian automakers, Ferrari and Lamborghini, are not so keen on building an all-electric sports car just yet. On the contrary, Bentley has just confirmed that there...
by - September 17, 2017
Back in 2013, Nissan introduced the IDx Concept at the Tokyo Motor Show. When the audience first saw this, a lot of people got excited to see a lightweight sports...
by - September 17, 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