Investor interest in Ferrari NV ahead of its IPO exceeds the amount of shares that will be for sale, people close to the matter told Bloomberg Business.
Last week interested investors in Ferrari shares told bankers that demand would exceed availability by a wide margin. The sale has been in the works for about a year, Bloomberg says, with the automaker set to disclose the price of the shares on Tuesday.
About 18.89 million Ferrari shares will be up for sale for $48 to $52 a piece, equivalent to about 10 percent of the company. The sale will bankroll about $4 billion for Fiat-Chrysler, helping it finance a planned $54.6 billion investment to expand its Alfa Romeo, Maserati and Jeep nameplates globally.
If interested investors don’t get in on the Ferrari stock this year, they aren’t entirely out of luck. Fiat-Chrysler plans to sell off its remaining 80 percent holding in the manufacturer next year, with 10 percent of the company remaining with Piero Ferrari and the Ferrari family.