Fiat Chrysler Automobiles' chances are very good in the event that they are decided to offer more Ferrari cars from the original plan of just selling 10 percent during the projected first public sale later this year to meet the strong demand from their investors, according to Auto World News,
Fiat Chrysler CEO Sergio Machionne said that in an ideal world they would like to limit it to just 10 percent to keep in line with what they have announced during the industry event in Geneva last Tuesday. He also added that if it turns out that there isn't enough liquidity with that stake they might have to increase it.
Marchionne is also the chairman of Ferrari has announced back in October that they would spin off Ferrari by selling 10 percent stake through an IPO (Initial Public Offering) and then deal out the remaining 80 percent to FCA's stake to its shareholders. The remaining 10 percent will be given to Piero Ferrari, vice chairman and son of founder Ferrari.
At the auto show, Marchionne said that selling 10 percent is too little when there is an excessive demand and even 20 percent would not resolve the low liquidity problem. That's they are evaluating if selling more than 10 percent is advisable and higher stakes sold in the market would lower the number of shares in Ferrari that could go to current shareholders, Wall Street Journal reported.
He also added that the car manufacturer could introduce a loyalty share plan as part of the company's IPO program. This process will go through a voting system through their five long-term investors.
Fiat Chrysler has a primary listing on the New York Stock Exchange and secondary listing in Milan and Ferrari will soon follow in New York and soon after a possible secondary listing in Europe.