When Ferrari’s initial public offering (IPO) hits the share market, chief executive officer of Fiat Chrysler, Sergio Marchionne, says he expects to see the brand valued at in excess of $11 billion.
Last year, Fiat Chrysler revealed that it would spin-off Ferrari with 10 per cent hitting the share market and a further 80 per cent being divided between Fiat Chrysler investors. The remaining 10 per cent will remain with Enzo Ferrari’s son, Piero Ferrari.
Fiat initially decided on spinning off the Italian supercar manufacturer to help fund a new investment plan valued at 48 billion euros. Additionally, Fiat Chrysler hopes to increase its vehicle deliveries to 7 million cars annually by 2018.
If Ferrari is indeed valued at $11 billion, it will represent approximately 60 per cent of the total value of Fiat Chrysler. While it remains to be seen when exactly Ferrari will hit the share market, Marchionne recently said it will come sometime after October 13th.