Ferrari Has The Panache To Make Wall Street Take Notice
$FCAU
This coming October, Fiat Chrysler Automobiles CEO Sergio Marchionne is ready to deliver the high-profile IPO (initial public offering) of the year: the ultra Supercar Ferrari is set to become an independent publicly-owned company.
Fiat-Chrysler Automobiles’ (FCA) boss has been talking about the spin off as the sexiest across the automotive industry this year and the iconic Ferrari brand has enough panache to make Wall Street stand up and take notice, but the true car enthusiasts also know this once in a lifetime even is also the chance to fulfill the ultimate investment dream own shares in Ferrari.
The catch, an IPO of this style and size will be mostly unavailable to individual investors prior to the market open, institutional participants only.
But once the early shares are allotted and the market opens, civilian retail investors will get a chance to buy a piece of Ferrari, expect at a premium.
Do not expect FCA have any trouble getting firm commitments from the underwriters for the entire Ferrari share purchase (+the ‘Green Shoe’) which happens before any shares are available for public trading.
FCA, the world’s 7th largest automaker, disclosed it would only make around 10% of Ferrari’s stock available in the IPO, the rest being equally distributed among the current FCA shareholders. And another 10% is owned by Piero Ferrari, son of company founder Enzo Ferrari.
HeffX-LTN Analysis for FCAU: | Overall | Short | Intermediate | Long |
Neutral (-0.03) | Neutral (0.05) | Neutral (0.00) | Neutral (-0.15) |
Stay tuned…
HeffX-LTN
Paul Ebeling
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