Ferrari IPO plan means you may not be able to afford the car but you can own part of the company.
Fiat Chrysler CEO Sergio Marchionne said today the automaker is days away from filing a document that will provide investors with a deep look at Ferrari’s value and financial performance.
Fiat Chrysler Automobiles CEO Sergio Marchionne said Friday that the automaker is days away from filing its prospectus for a public stock offering for at least 10% of Ferrari’s shares.
Marchionne first announced the company’s intention to spin Ferrari off into a separate company last year and has said he expects the IPO to be completed by the end of this year.
Friday was the first time Marchionne disclosed the timing of the prospectus, which is typically a detailed document spanning hundreds of pages that provides a snapshot of the company’s financial performance and business. The document is intended to give potential investors a way to evaluate the company.
“We are days away from filing the prospectus,” Marchionne told reporters Friday after a panel discussion at the Toronto Global Forum that was broadcast by Canada’s Business News Network.
On Thursday, Fiat Chrysler said Ferrari’s tax residence will not change following the IPO even though the company will be incorporated in the Netherlands and officially headquartered in London, England.
Ferrari, a manufacturer of exotic sports cars and Formula 1 race cars, is located in Maranello, Italy. All of its business and manufacturing operations are located in the central Italy town of about 17,000.
“Ferrari will continue to be organized under Italian law and tax resident in Italy. Ferrari will pay Italian taxes on its income as all Italian tax resident corporations do today,” the automaker said in a statement Thursday.
Marchionne plans to offer 10% of Fiat’s shares to the public and will distribute 80% of the remaining shares to Fiat Chrysler shareholders. The last 10% of Ferrari is owned by Piero Lardi Ferrari, a son of the founder.
Bloomberg News said last week that Marchionne is valuing Ferrari at $11 billion or higher. It’s a key part of the automaker’s plan to wring value from FCA’s holdings to support a five-year, $61-billion investment plan.
Marchionne also said the automaker must not get carried away with its plan to expand the global volumes of Maserati — annual global volume should be capped about 75,000 to maintain the exclusivity and value of the brand.
“You need to let the market take cars as they come,” Marchionne said.
The automaker sold more than 36,000 Maseratis globally in 2014, a 137% increase over the prior year.
Marchionne also talked about policies that have made Ontario and Canada less competitive than the U.S. and Mexico. In recent years, the automotive industry has raced to build assembly plants in Mexico and several manufacturers have reduced their presence in Canada.
“This is not what I would call the cheapest jurisdiction in which to produce,” Marchionne said, according to the Globe and Mail.