Ferrari On Course To Meet 10 Billion Euro IPO Target
Industry News
As Volkswagen suffers from a emissions cheating crisis entirely of its own making, one little company we all know so well is getting on with business as usual. To be more specific demand for Ferrari shares is exceeding demand by more than 10 times as the company seeks to leverage its brand by offering shares for sale. Insider reports suggest that Sergio Marchionne, Fiat/Chrysler CEO and Chairman of Ferrari,  will meet the goal of raising 10 billion euros and it seems the recent VW crisis has not put off investors despite other European carmakers seeing a fall  in market value. The VW cheating crisis has caused a $50 billion fall in value in the automotive market. Volkswagen’s short term gains has seen 40 percent being wiped off its own market value since it emerged it had used software to cheat emissions tests. Peugeot / Citroen has seen a 14 percent drop in market value, Fiat Chrysler 9 percent. When Ferrari is listed on the New York Stock exchange it will effectively be an independent company. Only 10 percent of Ferrari shares will be offered for an IPO, 80 percent will be distributed to private shareholders. Piero Ferrari, Enzo Ferrari’s son and Vice Chairman, will retain a 10 percent shareholding. Marchionne wants to raise cash to begin the next phase of re-structuring Fiat Chrysler, Alfa Romeo and Maserati. The $3 billion windfall will bolster the 48 million euros Marchionne is raising for this re-structuring. Marchionne has positioned Ferrari as a luxury goods brand.  Marchionne-Ferrari
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