Ferrari sets $1 billion IPO
10-13-2015, 10:55 AM
#1
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Ferrari sets $1 billion IPO
http://money.cnn.com/2015/10/12/inve...&iid=obnetwork
Ferrari sets $1 billion IPO. Ticker symbol? RACE
RACE. That's the ticker symbol that Ferrari will use when it debuts on the New York Stock Exchange with a $10 billion valuation within the next few months.
Parent company Fiat Chrysler Automobile (FCAM) said Monday it plans to set a price of $48 to $52 per Ferrari share and intends to sell about 10% of the company in the initial public offering. The company hopes to raise just about $1 billion from investors.
After the IPO, Fiat Chrysler shareholders will be given the remaining Ferrari shares to split the luxury car manufacturer from its parent company.
Fiat Chrysler also owns the Maserati, Jeep and Dodge brands.
Ferrari makes some of the most exclusive cars in the world and has historically capped production at 7,000 vehicles per year to ensure demand always outstrips supply.
Some customers wait years for the delivery of their new vehicle.
This strategy has made the Ferrari brand one of the most valuable in the world.
However, Ferrari has begun slightly expanding its production -- delivering 7,255 cars last year -- to ensure its waiting list doesn't get too long.
Ferrari reported 2.8 billion euros ($3.3 billion) in sales last year, resulting in a profit of 265 million euros ($302 million).
The son of Ferrari's founder -- Piero Ferrari -- is expected to maintain his 10% stake in the firm.
RACE. That's the ticker symbol that Ferrari will use when it debuts on the New York Stock Exchange with a $10 billion valuation within the next few months.
Parent company Fiat Chrysler Automobile (FCAM) said Monday it plans to set a price of $48 to $52 per Ferrari share and intends to sell about 10% of the company in the initial public offering. The company hopes to raise just about $1 billion from investors.
After the IPO, Fiat Chrysler shareholders will be given the remaining Ferrari shares to split the luxury car manufacturer from its parent company.
Fiat Chrysler also owns the Maserati, Jeep and Dodge brands.
Ferrari makes some of the most exclusive cars in the world and has historically capped production at 7,000 vehicles per year to ensure demand always outstrips supply.
Some customers wait years for the delivery of their new vehicle.
This strategy has made the Ferrari brand one of the most valuable in the world.
However, Ferrari has begun slightly expanding its production -- delivering 7,255 cars last year -- to ensure its waiting list doesn't get too long.
Ferrari reported 2.8 billion euros ($3.3 billion) in sales last year, resulting in a profit of 265 million euros ($302 million).
The son of Ferrari's founder -- Piero Ferrari -- is expected to maintain his 10% stake in the firm.
10-14-2015, 08:24 AM
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It's actually brilliant in a way. It allows poor schleps (like myself) an opportunity to "own some Ferrari."
Initial sale will skyrocket the price day one and by day 3 taper off to $60-70/share.
With VW hurting and Fiat the new kind of the automotive ring, at least for now it's pretty safe money. Plus the ticker tag alone is going to ensure good results for many years. This has been in the work publicly going on 2 years now and is well planned. It may fluctuate sharply with oil prices and especially the European economy, but this being only %10 of the total company at risk, it's not going to hurt them or investors much.
Also consider the cost. Even after the EPA scandal Volkswagen Group is worth $109/share, which is much more affordable than the ~250 it was prior. Making Ferrari so low for it's IPO is going to attract the same kind of short term investors Facebook's IPO garnered.
It's all brilliant, really!
Initial sale will skyrocket the price day one and by day 3 taper off to $60-70/share.
With VW hurting and Fiat the new kind of the automotive ring, at least for now it's pretty safe money. Plus the ticker tag alone is going to ensure good results for many years. This has been in the work publicly going on 2 years now and is well planned. It may fluctuate sharply with oil prices and especially the European economy, but this being only %10 of the total company at risk, it's not going to hurt them or investors much.
Also consider the cost. Even after the EPA scandal Volkswagen Group is worth $109/share, which is much more affordable than the ~250 it was prior. Making Ferrari so low for it's IPO is going to attract the same kind of short term investors Facebook's IPO garnered.
It's all brilliant, really!
10-14-2015, 06:32 PM
#4
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Public ownership is anything but brilliant. Companies should answer only to their customers and never to shareholders. 99% of shareholders no NOTHING about the businesses they own shares in. It's like asking your gardener to design the next space shuttle... stupid in every way. I've NEVER seen a company's customer satisfaction go up after going public. It only ever goes down. To pay shareholders, employees get the shaft and customers get the shaft.
10-16-2015, 11:07 AM
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Considering that the IPO is 10% and Piero Ferrari owns 10%, I don't see any danger of potential public takeover. Also being Italians they're going to keep it that way, I mean what does the ignorant public know about making supercars? Italians are a proud an stubborn people.
This is nothing more than a way to a.) drum up finances and customer brand support. b.) allow a small amount of segregation between the Ferrari brand and Fiat ownership.
This is nothing more than a way to a.) drum up finances and customer brand support. b.) allow a small amount of segregation between the Ferrari brand and Fiat ownership.