Ferrari’s initial product offering is nearly live, with Fiat Chrysler Automobiles NV set to sell 10% of its stake in the supercar manufacturer under the ticker symbol ‘RACE’. Funds raised through the IPO will help support the automaker’s $55-billion, five-year expansion plan that will see its current annual production raise by as much as 3,000 units to 10,000 cars.
Stock in Ferrari will initially be listed at $48 and $52 per share, placing the value of the entire company at $9.8 billion. FCA will sell about 17.2 million shares in the company, equivalent to a 9% stake, and will give its stock underwriters permission to purchase up to 1.7 million shares, or 1% of the automaker.
FCA CEO Sergio Marchionne is planning on expanding Ferrari while also retaining the company’s invaluable exclusivity and image. Production may increase to around 10,000 units, and the company could also increase its dealership presence, expand its accessories and apparel line and build more theme parks such as Ferrari World in Abu Dhabi to expand the brand.
About 80% of Ferrari will be owned by FCA following the IPO, with the Ferrari family themselves retaining their 10% stake. An exact start date for the sale has yet to be given.