Ferrari soon to be referred as "NYSE: RACE" will be going public on Wednesday, October 21. The preliminary price range for the Ferrari IPO has been set at $48 to $52 a share.
Ferrari is a part of Fiat Chrysler Group (FCA) who owns industry leading car brands such as Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Ram Trucks, Abarth, Mopar, SRT and high end brands such as Ferrari, Maserati, Comau, Magneti Marelli, Teksid.
According to the comments from Fiat Chrysler Group on Monday, the company plans to sell 9%, or 17.2 million shares, of Ferrari and has given its own underwriters the ability to purchase up to 1%, or 1.7 million Ferrari shares.
At the moment Fiat Chrysler Group currently holds 90% stake in Ferrari with the remaining 10% being held by Ferrari S.p.A.’s Vice Chairman, Piero Ferrari. After the IPO, FCA would still own 80% of Ferrari. Thus, Fiat's stock (FCAU) is also expected to be influenced by the highest profiled IPO of the year.
What makes this IPO interesting and appealing is its valuation, the Ferrari IPO valuation would be $9.8 billion which is 33 times larger than Ferrari’s total 2014 earnings.
Additionally unlike other car brands, Ferrari has been recession proof, not only they had just 5% drop in 2008 Great Recession, but also managed to sell 7,200 cars in 2014 with a major comeback, especially in emerging markets.
Ferrari IPO Filing Details to Know
- Ferrari defines itself as a luxury car company and focuses on the word “luxury” which has appeared 151 times in the IPO filing.
- Approximately 57% of Ferrari's non-current assets – the company's long-term investment or materials – consist of brand value which covers the value of the Ferrari brand name, copyrights, patents as well as intellectual property rights. These are intangible assets and have no physical value.
- The IPO aims to serve FCA’s $55 billion expansion plan.
How to buy Ferrari stocks almost for free!
Ferrari's stock symbol will be "RACE" and will be available on Plus500 as of Wednesday the 21st. The broker also offers as much as $25 welcome bonus which can be used to buy Ferrari stocks too.
Don’t miss this opportunity, get your $25 welcome bonus and buy a Ferrari stock too!