IPOs

Ferrari Files For U.S. IPO

Fiat Chrysler needs the equity financing to meet its long-term goal of boosting sales by 60%.
Katie Kuehner-HebertJuly 23, 2015
Ferrari Files For U.S. IPO

Ferrari is one step closer to being listed on the New York Stock Exchange.

Fiat Chrysler on Thursday said that its subsidiary New Business Netherlands N.V. — to be renamed Ferrari N.V. — has filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering of common shares currently held by Fiat Chrysler. In connection with the initial public offering, Ferrari intends to apply to list its common shares on the New York Stock Exchange.

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sports carFiat Chrysler has “one of the highest debt [loads] in the industry” and needs the funds from a Ferrari IPO and subsequent listing to help finance the company’s goal to boost sales by 60%, to 7 million cars, by 2018 and increase net profit five-fold, Reuters said.

The company said last year it would sell up to 10% of Ferrari via the share offering and would distribute the rest of its stake to its shareholders. The float is expected after mid-October while the separation should be completed in early 2016. Fiat Chrysler currently owns 90% of Ferrari, with the remaining 10% held by Piero Ferrari, vice chairman and son of the founder Enzo, who died in 1988.

“Ferrari’s float will also include a loyalty share scheme for long-term investors, set to tighten the grip on the company by Fiat’s founding Agnelli family,” Reuters wrote. “The Agnellis, through their holding company Exor, and Piero Ferrari together could end up with a voting power of just under 51%, enabling them to thwart any unwanted takeover bid.”

Image: Thinkstock

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