Fiat Chrysler begins process of selling 10% stake in Ferrari to Wall Street investors
Fiat Chrysler begins process of selling 10% stake in Ferrari to Wall Street inve

Fiat Chrysler Automobiles NV has started the process of sale of a near 10% stake in luxury sports car brand Ferrari to Wall Street investors. On Monday, Fiat Chrysler gave a statement, saying that the initial public offering is going to price Ferrari at $48 and $52 per share, valuing one of Formula 1's most famous marques at $9.8 billion.

According to Fiat, the stake sale belongs to a ‘series of transactions to separate Ferrari from FCA’. It added that the motive of the sale is to distinguish the luxury brand from its mass-market parent, while unlocking value in sports car maker for raising money to support the growth plans of Fiat Chrysler.

Ferrari shares are going to be traded under the symbol RACE. So far, no date has been mentioned for the start of trading and just like the case when Fiat merged with Chrysler there is going to be no secondary listing in Europe.

Fiat Chrysler CEO Sergio Marchionne tried to convince investors immediately regarding the value inherent in Ferrari.

After seeing a 10% float in the share capital, Fiat Chrysler is going to retain nearly an 80% share, which it mentioned that it was intending to distribute in its own shareholders in the beginning of 2016. The Ferrari family is the owner of the left 10%.

Fiat Chrysler is going to offer a 9% share on the market, whereas underwriters have a collective option for a 1% stake. In Milan trading, shares in Fiat Chrysler saw a 1.7% rise to 14.05 euros.

Check out More news from Telecom Sector :: Pharmaceutical Sector :: Auto Sector :: Infrastructure :: Real Estate