Fiat Chrysler just launched its Ferrari IPO
Ferrari, known for its high-powered, highly-prized sports cars, now has a ticker symbol to match: RACE.
FCA (FCAU) said in a release that it plans to sell about 17 million common shares—equal to a 9% stake—of the Italian luxury car company. The shares will price at between $48 and $52, and they will trade under its RACE ticker on the New York Stock Exchange.
FCA is floating 10% of Ferrari; it’s offering a 9% share on the market and underwriters have an option for a 1% stake. After the sell-off, FCA will own 80% of Ferrari, which it plans to distribute to its shareholders early next year. The remaining 10% of the company belongs Piero Ferrari, the son of the Ferrari founder Enzo Ferrari.
The initial public offering is the first in a series of transactions aimed at separating Ferrari from FCA.
Fiat has owned part of Ferrari since 1969 when it bought a 50% stake in the carmaker. Fiat has been Chrysler’s parent since right after Chrysler’s bankruptcy and government bailout in 2009. Fiat officially took over Chrysler last year as the two companies merged into FCA.