Fiat Chrysler Automobiles has moved forward with its Ferrari initial public offering, confirming a valuation target for the Prancing Horse marque.
The company will put a nine-percent stake up for sale, with a price range of $48 to $52 per share — equating to a total valuation between $9.2 and $9.8 billion. The figures are closer to analyst estimates, but below FCA chief Sergio Marchionne’s estimate of at least 10 billion euros (~$11.4 billion USD).
The IPO will include 17 million shares placed on the New York Stock Exchange under the symbol “RACE.” The IPO’s underwriters will have an option to purchase up to 1.7 million shares, representing a one-percent stake.
“This offering is intended to be part of a series of transactions to separate Ferrari from FCA,” the company said in a statement. “Following completion of this offering, FCA expects to distribute its remaining 80 percent interest in Ferrari to FCA shareholders at the beginning of 2016.”
FCA shareholders will receive 80 percent of the IPO shares, while the remaining 10-percent stake will be retained by the Ferrari family.
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