Ferrari is expected to be valued at up to $9.82 billion at the time of its Initial Public Offering (IPO) on the New York Stock Exchange when a 9 per cent stake in the automaker is sold by Fiat Chrysler Automobiles.
In a filing made by Fiat with the U.S. Securities and Exchange Commission, it has been confirmed that 17.2 million shares will hit the market valued at $48 and $52 each. The Italian marque will be traded under the symbol ‘RACE’ on the New York Stock Exchange.
The filings have also revealed that Ferrari will take 2.8 billion euros in debt from Fiat Chrysler while also issuing 2.128 billion euros in debt to a number of third parties. All told, Ferrari’s enterprise value will sit at around $12 billion. As part of the IPO, Ferrari chairman Piero Ferrari, the son of Enzo Ferrari, will receive a cash payment of 280 million euros while retaining a 10 per cent stake in the company.
It is reported that demand for Ferrari stocks could be more than 10 times more than what will be made available.