Enzo Ferrari’s 2nd Son To Become A Billionaire On NYSE IPO
$RACE, $FCAU, $VLKAY
As the story goes, Enzo Ferrari was determined to protect his young son from the dangers of motor sport, that he ordered his workers not to let him sit in team race cars so he would not ever dream of becoming a racing driver.
Now more than 50 yrs later, the Ferrari legacy is about to make the son a billionaire as the world’s most iconic maker of supercars completes its IPO on the NYSE. The ticker will be “RACE.”
Piero Ferrari, 70 anni, will have a fortune of $1.3-M, mainly derived from his 10% stake in the Italian company.
Ferrari and its prancing Black Stallion logo transcend the current chaos in the automobile industry driven by the emissions-cheating scandal at Volkswagen AG (OTCMKT:VLKAY).
Nine of the 10 most valuable cars ever sold at public auction carry are Ferrari’s the 10th is a vintage Mercedes Benz racer..
The market is valuing Ferrari as a luxury-goods maker. There are very few companies this successful with that scale and multi-generational capacity to become a truly global luxury brand.
Ferrari plans to offer 17.2-M/shares, or 9%of the company, for 48 to 52 each, according to a regulatory filing with the US Securities and Exchange Commission. That price range values the sports-car producer as high as $9.82-B.
Piero Ferrari’s stake is valued in that range. He also received $320-M in cash as part of the reorganization of Ferrari before the listing. He declined to comment on his net worth when contacted.
Fiat Chrysler (NYSE:FCAU) Chairman Sergio Marchionne is spinning off Ferrari as part of his strategy to help fund a huge investment program that focuses on expanding the Jeep, Alfa Romeo and Maserati brands globally.
Piero inherited his stake from Enzo, a racing driver for Alfa Romeo who founded his own racing team, Scuderia Ferrari, in Y 1929. The marque’s 1st racing car was produced in Y 1947, and converted road car following a year later.
In Y 1950 Ferrari began to race in Formula One, where its 225 Grand Prix wins and 16 world championships make it the most successful team in the series. The most successful driver in the history of the sport, Germany’s Michael Schumacher, won the bulk of his races driving for Ferrari.
That Golden history attracts loyalty among car buyers as well as racing fans. Of the 7,255 Ferraris that rolled off the sports-car maker’s Maranello production line in 2014, about 60% were bought by existing owners.
Fiat 1st acquired a stake in Y 1969, buying 50% the company and ratcheting up production of road rather than track cars, although Enzo ensured he would continue to supervise the racing team until his death in Y 1988.
Enzo’s 2nd and only surviving son, Piero, inherited 10% of Ferrari and became Vice-Chairman of the group. At the same time Fiat exercised an option to raise its stake to 90%.
Piero told reporters in February that he doesn’t “have any plans” to sell my stake. Though a regular presence in the pit lane and a fervent advocate of all things Ferrari, he’s happy to have followed his father’s advice and avoided the driving seat.
“My father was right, I don’t think his prohibition ever left me without something important,” Ferrari wrote in the book “My Father Enzo.” “I wouldn’t have had a great career as a race driver. I would never have managed to become a Formula One driver.”
Have a terrific week.
Paul Ebeling
HeffX-LTN
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