If you can’t afford to buy a Ferrari then chance are you may not be able to afford to buy Ferrari shares. Today Ferrari will offer up 10 percent of shares to investors in a bid to raise about $12 billion dollars. The initial public offering (IPO) is said to be oversubscribed many times over.
Knowing that Ferrari shares will be oversubscribed before the IPO begins to trade on the New York Stock Exchange will only serve to increase the value of Ferrari shares.
Shares will be as expensive as the cars are to buy, the buying process is said to be private and information has seemingly leaked indicating that demand is exceeding the number of shares available.
Leaked information of this kind is almost like insider trading, it only serves to fuel up what will be a buying frenzy when the bell on the New York Stick Exchange is theatrically chimed by the Fiat / Chrysler CEO himself.
Sergio Marchionne wants to raise capital through the sale of Ferrari shares to enable him to part fund a 48 billion euro investment into the Fiat / Chrysler group which includes Jeep, Maserati and Alfa Romeo.
Around 18 million shares will trade under the name RACE, each share is estimated to worth between $48-53 dollars, this equates to around 10 percent of the company. The public listing is expected to generate $4 billion dollars alone.
Ferrari plan to sell 80 percent of shares privately to its own preferred investor while the founder’s son, Piero Ferrari, will keep 10 percent.