Ferrari IPO: Fasten Your Seat Belts!
Piero Ferrari, son of the maker of the legendary Italian sports car officially filed with US regulators on Thursday the 23rd of July its plans to launch an IPO share (initial public offering) on Wall Street, parent company Fiat Chrysler Automobiles confirms.
FCA announced several months ago that it would spin off its famed sports cars. Now Ferrari has the intention “to be listed on the New York Stock Exchange,” FCA said in a statement.
Italy-based and Holland-registered Ferrari , hopes to raise $10 billion.
FCA and UBS, its lead bank on the IPO, have not announced an offering price yet.
Ferrari is on the verge of a substantial change to to its business as FCA CEO and Ferrari Chairman Sergio Marchionne aims to increase Ferrari production from 7,000 vehicles to as much as 10,000.
Last year, longtime Ferrari Chairman Luca di Montezemolo stepped down amid speculation that he has clashed with Marchionne’s goals to sell more exotic sports cars and supercars to the world’s growing population of affluent Ferrari lovers.
Some really interesting facts:
- The Ferrari IPO has two secret internal company names.
The IPO is mysteriously code-named “Project Owl” when you pull the filing up in a web browser. And the company itself is currently flying under the radar in the SEC database as “New Business Netherlands NV.” It will be renamed “Ferrari” closer to the public sale of stock.
- About 1,000 fewer Ferraris were sold in 2014 compared to the year before (yet Ferrari took on more employees).
- Don’t buy this stock for explosive growth. Ferrari is seeking only “controlled growth”:
Controlled growth in developed and emerging markets. While we will continue to pursue a low volume production strategy and maintain our reputation for exclusivity, we intend to respond to growing demand, both in emerging markets as well as in response to demographic changes and the growth in the size and spending capacity of our target clients. We believe we can grow in a controlled manner while preserving the exclusivity of our brand by continuing to focus on distinct market segments and maintaining a strong pipeline of new car launches.
Date of the Ferrari IPO yet to be announced.
If you always dreamed of owning a Ferrari sports car, with this IPO, you are one step closer…in a way!