Ferrari valued at close to $10 billion as part of brand new York offering

Thursday, November 3rd, 2016 - autos, cars, motoring, news

Source : Ferrari valued at close to $10 billion as part of brand new York offering

Ferrari will be valued at close to $10 billion when part of the company is usually offered on the brand new York Stock Exchange

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Ferrari will be valued at almost $10 billion when part of the supercar company is usually offered on the brand new York Stock Exchange.

The sale – equivalent to 9% of the Italian brand – is usually part of a plan by parent company Fiat Chrysler Automobiles to raise crucial capital to help cut its debt in addition to fund growth in its various other brands, especially Jeep, Alfa Romeo in addition to Maserati  – a plan which is usually required to cost €48 billion.

A total of 17.2 million shares in Ferrari will be offered, with prices ranging through $48-52. Ferrari will be valued at around $9.82 billion as part of the offering. However, if the offering includes an over-allotment of shares to underwriters, the value of the company will reach $9.9 billion, representing a 10% stake.

Ferrari Chairman Piero Ferrari keeps his 10% stake inside the business in addition to receives a payout of €280 million as part of the deal.

Part of Ferrari’s separation through Fiat involves the company taking on €2.8 billion through its parent brand. Including that will debt, Ferrari will have an estimated value of around $12 billion – a figure which FCA boss Sergio Marchionne has deemed appropriate. 

Despite faith inside the automotive sector being shaken by the recent Volkswagen emissions scandal, insiders have suggested the Ferrari sale may be oversubscribed by as much as ten times the shares available.

Ferrari earned €389 million last year before interest in addition to tax, on a total revenue of €2.8 billion. This kind of delivered a total of 7255 cars in 2014.

The plan to formally split Ferrari through its parent company was announced in October 2014 when Marchionne confirmed the brand would likely be listed on the brand new York Stock Exchange. Announcing the move, he said: “As we move forward to secure the 2014-2018 Business Plan in addition to work toward maximising the value of our businesses to our shareholders, This kind of is usually proper that will we pursue separate paths for FCA in addition to Ferrari.”

Despite FCA’s troubles, Marchionne has said that will Ferrari won’t follow automotive trends by producing SUVs in addition to electric vehicles – This kind of’s believed the brand’s exclusivity is usually part of its mainstream appeal. Papers filed by Ferrari last month reveal the brand plans to raise production to 9000 vehicles by 2019.

The remaining 80% stake in Ferrari will be offered to investors at the beginning of next year. The Agnelli family, the dominant shareholders in FCA, will keep voting control of the brand.

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