Ferrari unit value may exceed $15b in IPO

Fiat Chrysler CEO Sergio Marchionne (second from left) at the presentation of the Fiat 500. Referring to the IPO, he said "there is also the scarcity value as we are just selling a 10 per cent stake".
Fiat Chrysler CEO Sergio Marchionne (second from left) at the presentation of the Fiat 500. Referring to the IPO, he said "there is also the scarcity value as we are just selling a 10 per cent stake".PHOTO: EUROPEAN PRESSPHOTO AGENCY

MILAN • Mr Sergio Marchionne, chief executive officer of Fiat Chrysler Automobiles, expects its Ferrari supercar-maker unit to be valued at "at least" €10 billion (S$15 billion) in an initial public offering (IPO) scheduled this year.

"There are clear expectations from ourselves as the Ferrari brand is unique," Mr Marchionne said last Friday at the presentation of the new subcompact Fiat 500 in Turin, Italy. "There is also a scarcity value as we are just selling a 10 per cent stake."

Fiat Chrysler announced plans last year to sell 10 per cent of Ferrari and distribute its remaining 80 per cent stake to Fiat Chrysler investors. Mr Piero Ferrari, the son of founder Enzo Ferrari, also owns 10 per cent and plans to keep his holding.

Getting the most out of the listing is crucial for Mr Marchionne's plans to fund a €48 billion investment plan aimed at lifting Fiat Chrysler deliveries to seven million cars by 2018.

Fiat Chrysler shares have risen about 33 per cent this year, boosting its market capitalisation to €16.6 billion.

Valued at €10 billion, Ferrari would represent about 60 per cent of the value of the group.

Ferrari, whose logo features the flag colours of its home nation Italy, plans listing on the New York Stock Exchange as a Dutch holding with its fiscal residence in Britain, Mr Marchionne said on Friday.

This would mirror the multinational structure used for parent company Fiat Chrysler. Mr Marchionne said the operative Ferrari unit will continue to be based in Italy and will pay taxes there.

He said last month that Ferrari could be listed in New York on Oct 13 after the IPO was delayed over a tax issue. BLOOMBERG

A version of this article appeared in the print edition of The Sunday Times on July 05, 2015, with the headline 'Ferrari unit value may exceed $15b in IPO'. Print Edition | Subscribe