The sale will consist of 17.2-M shares of Dutch holding company Ferrari NV at 48 to 52 each, according to a filing with the US Securities and Exchange Commission (SEC) late Friday.
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A year ago, Fiat Chrysler announced it would be spinning Ferrari off as its own company, offering around 10 percent of outstanding shares to the public.
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It also includes a loyalty-ownership setup which will help the Agnelli Family, the dominant shareholder in Fiat Chrysler, to keep voting control of Ferrari. The Italian marque will be traded under the symbol “RACE” on the New York Stock Exchange.
Including that particular debt, Ferrari would have a value of close to $12 billion.
The filing shows that Ferrari will take on $3.16 billion in debt from the company, As part of its separation from Fiat and subsequently issue a projected 2.128 billion euros in debt to third parties.
Last year, Ferrari sold 7,245 of the luxury sports cars and had an operating profit of €693 million ($787.2 million), more than 9% higher than in 2013. Ferrari will not receive any of the proceeds from the $859 million I.P.O., at the midpoint of the range; they will mostly go to Fiat Chrysler. CEO Sergio Marchionne wants to expand the luxury range downward, and that led to the retirement last October of Ferrari’s long-time chief, Luca Cordero di Montezemolo. Ferrari expects to report revenue of about €720m-€730m for the three months ended 30 September, an increase of 9-10% from a year earlier. Enzo Ferrari started a team in 1929 called Scuderia Ferrari, but the company didn’t produce its first vehicle until 1947.
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Ferrari’s cars are for the über-wealthy, with a starting price of around $200,000.
