A regulatory filing by sports carmaker Ferrari with the U.S. Securities and Exchange Commission said that the company would offer 17.2 million shares valued at $48 to $52 each for its initial public offering (IPO).
The share represents 9 percent of Ferrari. At that price range, Ferrari would have a value of $9.82 billion.
However, CommerzBank head of automotive research Sascha Gommel finds the value a bit overestimated despite the vehicle's strong brand. Gommel attributes it to the market being too excited about the IPO.
The IPO is part of Fiat spinning off Ferrari to help finance a 48-billion euro investment program that would focus on expansion of the vehicle giant's brands globally, mainly the Jeep, Alfa Romeo and Maserati. The $859-million IPO will thus mostly go to Fiat Chrysler, reports The New York Times.
With these changes, the Agnelli family - which controls Fiat Chrysler - would become the largest stakeholder in Ferrari with 24 percent share via Exor Spa, their holding company. Under its loyalty voting program, over 30 percent of the votes will be controlled by Exor, while Pierro Ferrari, would control about 15 percent, the IPO prospectus states.
Pierro, 70, is the son of Ferrari founder, Enzo, who ordered workers not to allow Pierro when he was a boy to sit in their team cars so he would not become a car racer. Pierro, instead, became a billionaire with a fortune estimated at $1.3 billion which mainly comes from his 10 percent holdings in Ferrari that he inherited from Enzo.
Ferrari first produced a race car in 1947 and a road vehicle in 1948. Ferrari car owners are loyal to the brand such that 60 percent of the 7,255 Ferraris made in 2014 were purchased by current Ferrari owners.
Besides current owners, Ferrari markets its sports cars by its participation in Formula One races where it has won 224 Grand Prix races and 15 drivers' world championships since the start of Formula One in 1950.