With the filing of a spin-off of Ferrari with the regulator, Fiat Chrysler Automobiles NV (NYSE:FCAU) is also getting ready to launch the IPO in the Americas. The issued shares would get listed on the New York Stock Exchange as Ferrari N.V. The company is yet to decide on the quantum of the offering, as well as, the possible price range. However, the planned IPO is not likely to exceed 10% of the outstanding shares of Ferrari.
Majority Holding
After the issue, Fiat Chrysler Automobiles NV (NYSE:FCAU) expects to hold 80% stake in Ferrari while 10% stake will be held by Ferrari founder’s son, Piero Ferrari. The company is also planning to distribute the remaining Ferrari shares to its shareholders once the IPO is over, according to its filing with the SEC. The latest moves were part of a plan disclosed in October last year.
Chrysler was brought under the control of Fiat last year to be merged as Fiat Chrysler Automobiles NV (NYSE:FCAU). That later became the seventh biggest automaker in the world. Incidentally, Fiat was the parent company for Chrysler following the bankruptcy, as well as, bailout package in 2009. However, Ferrari was a part of Fiat after 1969 following the acquisition of 50% stake in the automaker.
Two Brands
Fiat had two brands before being merged to be known as Fiat Chrysler Automobiles NV (NYSE:FCAU). That was Maserati and Ferrari. The brands were handled independently from its mass-market auto, as well as, truck lines. In 2014, Fiat Chrysler sold 4.6 million trucks and automobiles from 150 countries.
Ferrari, which was founded in 1947, produces luxury sports cars. That included some models selling for over $1 million. The company restricts its production thus enhancing its charisma. For instance, the shipment in 2014 was 7,255 automobiles. Currently, there were eight models. UBS will handle the global coordinator position for IPO while Banco Santander and Bank of America Merrill Lynch would be the book-runners.
Ferrari S.p.A. is an Italian luxury sports car manufacturer based in Maranello. Founded by Enzo Ferrari in 1929, as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before moving into production of street-legal vehicles in 1947. Fiat acquired 50% of Ferrari in 1969 and expanded its stake to 90% in 1988. Ferrari is the world’s most powerful brand according to Brand Finance. In May 2012 the 1962 Ferrari 250 GTO became the most expensive car in history, selling in a private transaction for $38,115,000 to American communications magnate Craig McCaw.In 2014 Fiat announced its intentions to sell a portion of its share in Ferrari; as of the announcement Fiat owned 90% of Ferrari.
Throughout its history, the company has been noted for its continued participation in racing, especially in Formula One, where it is the most successful racing team, holding the most constructors championships and having produced the highest number of winning drivers. Ferrari road cars are generally seen as a symbol of speed, luxury and wealth.
The post Fiat Chrysler Automobiles NV (FCAU) Looks Set To Launch IPO For Ferrari appeared first on Live Trading News.