Fiat Chrysler kick-starts sale of Ferrari stake
MILAN (AP) — Fiat Chrysler Automobiles NV has begun the process of selling a near 10-percent stake in luxury sports car brand Ferrari to Wall Street investors.
In a statement Monday, Fiat Chrysler said the initial public offering will price Ferrari at $48 and $52 per share, which will value one of Formula 1′s most famous marques at $9.8 billion.
Fiat said the stake sale is part of a “series of transactions to separate Ferrari from FCA.” It said the sale is aimed at distinguishing the luxury brand from its mass-market parent, while unlocking value in sports car maker to raise money to support Fiat Chrysler’s growth plans.
Ferrari shares will be traded under the symbol RACE. No date for the start of trading was given and as in the case when Fiat merged with Chrysler there will be no secondary listing in Europe.
Fiat Chrysler CEO Sergio Marchionne was setting out immediately to persuade investors of the value inherent in Ferrari.
After the float of 10 percent of the share capital, Fiat Chrysler will retain about an 80 percent share, which it said it intends to distribute to its own shareholders early next year. The Ferrari family owns the remaining 10 percent.
Fiat Chrysler is offering a 9-percent share on the market, while underwriters have a collective option for a 1-percent stake.
Shares in Fiat Chrysler rose 1.7 percent to 14.05 euros in Milan trading.