Ferrari shares up 15 percent on debut on Wall Street
11:52
The prancing horse brand, probably the most iconic automotive brand in the world, has seen its shares jump 15 percent to $60 on its Wall Street debut on Wednesday following the Italian company’s pricing of the initial public offering at the higher end of the range.
Increased investor demand has been easily spotted with Ferrari – which is active on the NYSE under the symbol “RACE” – while other IPO’s in the period have faltered or have been postponed. Fiat Chrysler Automobiles has also managed a great maneuver by only allowing 10 percent of the shares to be snatched by eager investors – leveraging an exclusivity factor that is utterly common with the expensive supercar maker. FCA, which sold the share in Maranello-based Ferrari at $52 each, could earn up to $982 million if a “greenshoe” option is also called upon, with the sports car business stock market value tipping at $9.8 billion.
Ferrari Chief Executive Amedeo Felisa and Chairman Sergio Marchionne were present at the traditional New York Stock Exchange opening bell ring, next to company founder’s son Piero Ferrari and FCA Chairman John Elkann. The latter’s Agnelli family will turn into Ferrari’s main shareholder following the planned spinoff and distribution of the rest of the FCA holding among its own investors next year. Piero Ferrari also owns 10 percent of Ferrari and plans to keep his holding, while the plan to redistribute FCA’s remaining 80 percent stake in Ferrari among its own shareholders has helped the group’s share pricing jump more than 80 percent during the past year. FCA is also set to gain around $4 billion from the IPO and subsequent spinoff of the luxury sports car manufacturer.
Via Reuters
