Ferrari to get New York Stock Exchange listing

Fiat Chrysler has revealed its decision to list Ferrari on the New York Stock Exchange. The carmaker plans to sell around 10% of the supercar maker to investors. The new company to be called Ferrari NV, will have another 10% in the ownership of Piero Ferrari, the son of Enzo Ferrari.

 

The remaining 80% of the shares is to be distributed among existing Fiat Chrysler shareholders. Fiat Chrysler boss Sergio Marchionne said he expected Ferrari to be valued at "over £7 billion". Analysts have stated that such a figure indicates that Ferrari represented 60% of the whole value of the Fiat Chrysler combine.

 

If Ferrari NV is valued at around £8bn, it would mean Fiat Chrysler would raise £800m in cash from share sales and distribute around £6.4bn in value to Fiat Chrysler shareholders. This distribution of the shares should help Fiat Chrysler raise funds from the shareholder. The money is expected to be partly invested in future Alfa Romeo models. The brand's relaunch has eight new models scheduled over the next three years, and Marchionne hopes they will attract premium profit margins.

 

Rumour has it that Fiat Chrysler might also eventually sell off its Magneti Marelli components division, and has been approached by a number of  investors.