BBC and FT.com are reporting today that Ferrari will be spun off from Fiat Chrysler Automobiles into a seperate unit. The vast majority of existing Ferrari equity will go to FCA shareholders and current backers, but a 10-percent portion of the firm is heading for an IPO.
No word on the timing or location of this first-ever public sale offer from Ferrari, but New York is the most logical venue for a mega-debut of the firm in the stock market.
The Ferrari spin-off is said to be part of an overall capital investment plan by FCA, which is heavily leveraged and faces difficulty securing more low-interest loans to fund the integration of Fiat and Chrysler, as well as the Maserati and Alfa Romeo product renaissance.
So what will Ferrari shares bring on the open market? It all depends on the size of the pool being offered, and the IPO price. Considering Ferrari’s rich heritage and huge well of fan support in racing and road cars — a $60-per-share price is likely in the ballpark. Far larger than the typical $15 to $30 IPO pricing per share, but still with room to move upward.
Overall, the company likely hopes to pull in somewhere in the $10-billion ballpark for this landmark change in ownership structure.
The future of Ferrari is still certain to be bright red and blazing fast — but there are changes on the horizon if the company has the stockmarket to please after every racing season.
A bold move, and certainly the real reason long-time Ferrari lead DiMontezumolo left Ferrari officially a few feeks ago.
Stay tuned. As these record-breaking cars from Bonhams show– the mystique of the prancing horse badge can pull out the big checkbooks of the world.