FCA CEO Sergio Marchionne claims Ferrari is not an automaker; it is a luxury goods brand and must be viewed accordingly. Actually, he’s not off the mark.
According to a filling with the US Securities and Exchange Commisision on Friday, October 9, 17.2 million shares owned by FCA NV, that amount to 9 percent of all Ferrari stock, will trade on the New York Stock Exchange under the – aptly named – symbol RACE.
Sources familiar with the market told Bloomberg initial requests for Ferrari shares, which under the filling are expected to trade between US$48 and US$52 each, might exceed the amount available by more than 10 times!
Ferrari will eventually be completely separated from the rest of the group. It will take on 2.8 billion euros in debt from the company and subsequently issue a projected 2.128 billion euros in debt to third parties.
Including that debt, Ferrari will have an enterprise value of nearly US$12 billion. Marchionne, who is looking to raise US$54.5 billion in order to finance the Alfa Romeo, Fiat, Maserati, Chrysler and Jeep brands, will surely be satisfied with that number.
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