Ferrari Files for IPO, Valued at $10 Billion
On Friday Ferrari filed IPO paperwork to offer 17.2 million shares on the NYSE, valuing the company nearly $10 billion, at $48-$52 per share. The shares will trade on the New York Stock Exchange under the symbol RACE.
For owner Fiat Chrysler Automobiles NV, spinning off Ferrari is a way to finance a $54 billion investment program to improve and expand its Jeep, Alfa Romeo, and Maserati brands, Bloomberg reports.
The filing shows that Ferrari will take on $3.16 billion in debt from the company, As part of its separation from Fiat and subsequently issue a projected 2.128 billion euros in debt to third parties. Including that debt, Ferrari will have an enterprise value of about $12 billion.
Ferrari said it shipped 7, 255 cars and reached net revenues of $3.12 billion in 2014. The company expects third-quarter net revenues in a range of $814 million to $826 million, about 9 percent to 10 percent higher than third quarter 2014, the company said.Read more about: Business/Finance, Economy of Italy, Ferrari, Ferrari (RACE), Fiat Chrysler Automobiles, Fiat Chrysler Automobiles NV, Fiat-Chrysler, IPO, Luxury brands, Maserati, NEW YORK STOCK EXCHANGE LLC, Scuderia Ferrari