Close to the heels of Fiat Chrysler Automobiles (FCA) being listed on New York Stock Exchange (NYSE), the company has decided to list Ferrari on a stock exchange.
FCA currently owns 90 percent of Ferrari's stake. The other 10 percent belongs to Piero Ferrari, Enzo Ferrari's only living son.
Out of the 90 percent stake the company currently holds in Ferrari, FCA will make 10 percent available to the public, and the rest 90 percent of its holding will be distributed to FCA's shareholders.
It is expected that Ferrari's shares will go public in the US, and on an European exchange too, in 2015.
On the decision, Sergio Marchionne said, "As we move forward to secure the 2014-2018 Business Plan and work toward maximising the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari".
Commenting on the separation FCA chairman John Elkann said that the move will help preserve Ferrari's Italian heritage. He also said that distributing the shares amongst the parent company's stakeholders will "allow FCA shareholders to continue to benefit from the substantial value inherent in this business".
FCA's share price jumped over five percent after the announcement was made.
Sergio Marchionne recently took over as the chairman from Luca di Montezemolo who retired from the position he'd held since 1991.
Dipan Sur
Viraaj Bhatnagar
