Detroit Bureau on Twitter

Posts Tagged ‘Ferrari IPO’

Ferrari Stock Trading in Italy Set to Begin on Jan. 4

FCA may take Alfa Romeo back into Formula One.

by on Dec.15, 2015

FCA CEO Sergio Marchionne and former Ferrari CEO Luca di Montezemolo at the debut of the LaFerrari.

Not enough pennies in the piggybank to spring for the new Ferrari F12tdf? Not to worry, you can still own a Ferrari – or at least a piece of the Italian automaker.

Fiat Chrysler Automobiles says it expects to wrap-up the spin-off of its high-profile subsidiary sometime between December 31 and January 3rd, a process that began with the recent IPO of Ferrari shares on the New York Stock Exchange in October.

Become an Insider!

To complete the process, Ferrari shares are expected to go on sale on Milan’s Borsa Italiana on January 4th. How Italian investors react remains to be seen, but after a high-flying start on the NYSE, shares of the supercar company have dipped by around 10%.

(more…)

Ferrari Stock Surges on First Day

But can it maintain that momentum?

by on Oct.22, 2015

FCA and Ferrari CEO Sergio Marchionne (front right in sweater) launches trading in RACE stock.

With the New York Stock Exchange symbol RACE, one might expect a new stock to take off like, well, a Ferrari Formula One race car – and that’s precisely what happened as the Italian automaker launched its long-awaited IPO.

Ferrari’s first-day surge was all the more impressive considering its stock initially was priced at $52, at the upper end of the anticipated offering. While RACE shares didn’t quite have the explosive power of a Google IPO, they still managed to end Wednesday trading at $55. And that gives the exclusive sports car company a market value of $10.4 billion.

Breaking News!

The strong reception was especially welcome on Wall Street at a time when several other closely-watched IPOs, including Digicel Group Ltd., were either canceled or postponed or delivered weaker-than-expected results.

(more…)

Ferrari Set to Launch IPO

“Potentially risky,” but investors could reward a strong upside potential.

by on Oct.20, 2015

Ferrari unveiled the new 488 Spider at the Frankfurt Motor Show last month.

The new Ferrari 488 Spider will launch you from 0 to 60 in barely three seconds. Now, parent Fiat Chrysler is hoping Ferrari itself will burn rubber when it launches trading on the New York Stock Exchange Wednesday.

The trans-Atlantic automaker recently announced plans to sell off a 10% stake in Ferrari at somewhere between $48 and $52 a share, the actually price set to be announced today. That’s a fair bit higher than many analysts had expected when plans for an IPO were first announced last year – and that reflects FCA’s optimism that the Ferrari brand will become one of the rare gotta-have automotive stocks.

Your Inside Source!

There are plenty of reasons to be optimistic. As many Wall Street traders might tell you, there’s a long waiting line for Ferrari sports cars, something the Italian maker hopes to tap with a modest rise in production. And it is betting it can tap into booming global demand for luxury goods through new licensing agreements that could land the brand’s prancing pony logo on a variety of upscale products.

(more…)

Ferrari IPO Process Begins

Exotic maker said to be valued around $9.8 billion.

by on Oct.12, 2015

Ferrari's "prancing pony."

Fiat Chrysler Automobiles has launched the long-awaited Initial Public Offering of its Ferrari brand.

As part of what it says will be a “series of transactions to separate Ferrari from FCA,” the maker said Monday it expects to price the exotic sports carmaker’s shares at between $48 and $52 apiece. That would value the entire company at about $9.8 billion – slightly less than the $12 billion some industry analysts had been expecting.

By the Numbers!

FCA CEO Sergio Marchionne had long resisted a spin-off of the Ferrari brand, but apparently relented as it became apparent the trans-Atlantic automaker needed cash to fund future product development programs for its other U.S. and European brands.

(more…)

Ferrari Ready to Launch IPO

Going public could force big changes on low-volume brand.

by on Sep.30, 2015

FCA CEO Sergio Marchionne and former Ferrari CEO Luca di Montezemolo both celebrated the launch of the $1 million Ferrari Enzo ultra-car.

Fiat Chrysler Automobiles could launch the eagerly awaited initial public offering of its Ferrari brand as early as Friday, according to various industry reports.

The move could generate as much as $1 billion in much-needed revenue for FCA, but it also raises some serious questions about the future of the ultra-exclusive Ferrari. A debate over how much to grow the brand last year resulted in the ouster of long-time CEO Luca di Montezemolo, who favored a go-slow approach.

Take Stock!

FCA CEO Sergio Marchionne has wanted to take more advantage of Ferrari’s image in the global luxury market, however, and is expected not only to push for faster growth of the brand’s luxury cars, but also to license its prancing pony logo for a broader range of upscale goods.

(more…)

Fiat Chrysler Latest to Beat Expectations With Q2 Earnings

Net income up despite hefty consent agreement charge.

by on Jul.30, 2015

FCA is in "execution mode," says Marchionne.

Fiat Chrysler Automobiles may have begun the third quarter on a sour note, slammed with a record fine for safety lapses, but it ended the second-quarter in fine tune, handily exceeding Wall Street earnings forecasts.

The company, officially registered in the Netherlands, earned a profit of 333 million Euros, or $364 million, even after a chargeback of $88.5 million as a result of the consent order formally announced last weekend. A year ago, FCA earned 197 million Euros, or $215 million, for the period. On a per-share basis, the maker reported earnings of $0.21 between April-June 2015, analysts surveyed by MarketWatch predicting the figure would come in around 19 cents.

News You Can Trust!

As has been the case for several years, the recovering Chrysler side of the business helped prop up the balance sheet, primarily due to strong demand – and rising prices – in North America. But FCA also saw improvements in a European market just rebounding after a long and deep recession.

(more…)

FCA Sets Ferrari IPO into Motion

Iconic brand intends to retain “exclusivity,” but changes are likely.

by on Jul.23, 2015

Ferrari's 458 Speciale A during its debut at the Paris Motor Show last autumn.

The spin-off for Fiat Chrysler’s Ferrari brand officially got underway this morning as Fiat Chrysler Automobiles filed the regulatory papers necessary to launch the long-awaited IPO of the iconic sports car maker.

Hoping to raise some desperately needed cash for FCA’s five-year expansion plan, CEO Sergio Marchionne expects to sell off 10% of Ferrari’s shares in the initial public offering. Another 80% will be distributed to existing Fiat Chrysler shareholders. The remaining 10% is currently held by founder Enzo Ferrari’s son, Piero Lardi.

Subscribe for Free!

“It won’t be a difficult (sell),” Marchionne said earlier this year, reflecting the general expectation that investors will snap up the shares of Ferrari if priced properly. The CEO has said he expects the brand will be valued at around $11 billion.

(more…)

Ferrari IPO “Days Away”

Offering could be valued at $11 billion.

by on Jul.13, 2015

Sergio Marchionne said the Ferrari IPO prospectus will be ready within a few days, beginning the process of the long-awaited spinoff.

After an unexpected delay, Fiat Chrysler is expected to begin the process of spinning off Ferrari this week. CEO Sergio Marchionne said a prospectus for an initial public offering of 10% of the sports car brand’s shares will be filed within “days.”

The long-awaited move was pushed back due to legal restrictions set in motion by last year’s merger of Italy’s Fiat and the American Chrysler. But Marchionne ultimately expects to see the IPO back a market valuation of $11 billion or more for Ferrari, an automotive icon that has long had to turn away potential customers due to self-imposed production limits.

The Leader in Global Automotive News!

“We are days away from filing the prospectus,” Marchionne told reporters after a panel discussion at the Toronto Global Forum last Friday. (more…)

Fiat Expects to Finish Ferrari Spinoff Next Summer

IPO part of a plan to grow FCA globally.

by on Nov.14, 2014

Sergio Marchionne told reporters in Italy that the Ferrari IPO will now happen in the second or third quarter of 2015.

The Ferrari initial public offering is now expected to be complete between the second and the third quarter of 2015, Fiat Chrysler Automobiles Chief Executive Sergio Marchionne told reporters in Italy.

FCA announced last month it planned to spinoff Ferrari from the group, selling a 10% stake via a public offering and distributing the rest of FCA’s stake in Ferrari to its shareholders. The Ferrari IPO is expected to raise $5 billion to reduce FCA’s debt and bolster the company’s balance sheet.

Power!

The spinoff is part of a bigger capital-raising plan that also includes a $2.5 billion convertible bond issue to help cut debt and fund an ambitious business plan aimed at turning FCA into a global carmaker. (more…)