Ferrari sets $1 billion IPO. Ticker symbol? RACE
LONDON — RACE. That’s the ticker symbol that Ferrari will use when it debuts on the New York Stock Exchange with a $10 billion valuation within the next few months.
Parent company Fiat Chrysler Automobile said Monday it plans to set a price of $48 to $52 per Ferrari share and intends to sell about 10% of the company in the initial public offering. The company hopes to raise just about $1 billion from investors.
After the IPO, Fiat Chrysler shareholders will be given the remaining Ferrari shares to split the luxury car manufacturer from its parent company.
Fiat Chrysler also owns the Maserati, Jeep and Dodge brands.
Ferrari makes some of the most exclusive cars in the world and has historically capped production at 7,000 vehicles per year to ensure demand always outstrips supply. Some customers wait years for the delivery of their new vehicle.
This strategy has made the Ferrari brand one of the most valuable in the world.
However, Ferrari has begun slightly expanding its production — delivering 7,255 cars last year — to ensure its waiting list doesn’t get too long.
Ferrari reported 2.8 billion euros ($3.3 billion) in sales last year, resulting in a profit of 265 million euros ($302 million).
The son of Ferrari’s founder — Piero Ferrari — is expected to maintain his 10% stake in the firm.