Ferrari CEO Sergio Marchionne believes the brand’s initial public offering, scheduled to kick off later this year, could easily top 10 billion euros (AU$14.7b).
Marchionne, who is also the CEO of Ferrari’s parent company Fiat Chrysler, told press at this week’s unveiling of the refreshed 500 hatch that there is good reason to believe the supercar brand will be valued “at least” that highly.
“There are clear expectations from ourselves as Ferrari brand is unique,” he said. “There is also a scarcity value as we are just selling a 10 percent stake.”
Piero Ferrari, son of Ferrari founder Enzo, holds 10 percent already and plans to keep it. The remaining 80 percent will be distributed to Fiat Chrysler investors.
Plans to sell 10 percent of the Ferrari marque’s shares were first revealed last year when Marchionne announced details of the Fiat Chrysler company’s five-year business strategy.
News of that strategy, along with the Ferrari float and a heavy focus on brand-new models across the Fiat Chrysler family, have pushed the group’s shares up 33 percent this year.
Against Fiat Chrysler’s 16.6 billion euro market capitalisation, Ferrari’s expected 10 billion euro valuation would represent around 60 percent of the group’s total value.
Importantly, the ‘Prancing Horse’ brand’s IPO will be a key factor in Fiat Chrysler’s plans to invest 48 billion euros in new product and global growth over the next five years.
The Ferrari company will be listed on the New York Stock Exchange as a Dutch holding headquartered in the UK, following in the footsteps of parent Fiat Chrysler, which is also now based in London.