Luxury sports vehicle manufacturer Ferrari, has filed for an IPO in the USA at an enterprise valuation of about $9.8bn (£6.4bn, €8.6bn).
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The auto maker known as Ferrari N.V will place 17.2 million shares in the market for $48 to $52 each revealed an amended filing with the Securities and Exchange Commission. Ferrari, which will be listed in New York under the ticker FRRI, posted adjusted Ebitda past year of 693 million euros after generating a margin of 25 percent of sales.
Piero Ferrari and Fiat’s founding Agnelli family, through their holding company Exor S.P.A., could end up with a voting power of around 50 percent, enabling them to thwart any unwanted takeover bid.
The stock sale is set to be oversubscribed as investors remain unconcerned by the Volkswagen AG diesel-emissions testing scandal that has hurt mass-market automaker stocks, people familiar with the matter said late last month. FCA and Ferrari haven’t yet priced the offering, but that’s expected soon, possibly as early as Friday, according to Bloomberg.
Even after the spinoff, Piero Ferrari, vice chairman and son of founder Enzo, will continue to hold a 10% stake in the company. The company said it intends to raise production to 9,000 cars over the next four years, according to an SEC filing. It generated 2.8 billion euros in revenue past year, an increase of 18 percent from 2013.
The upcoming IPO has boosted shares of Fiat Chrysler, which rose more than 12% over the past five trading days, compared to the S&P 500’s 2.3% gain.
UBS Group, Bank of America’s Merrill Lynch, Banco Santander, Mediobanca and JPMorgan Chase & Co are advising on the IPO.
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The underwriters will have an option to buy an additional 1.7 million shares to cover overallotments, Friday’s filing shows.
