Individual shares were initially sold for $52, at the top of Fiat Chrysler Automobiles’ expected valuation range. Sold under the ticker symbol RACE, shares peaked around $60 before leveling out above $56 for an eight-percent gain.
Placing just a 10-percent stake on the open market, the IPO was oversubscribed and met with strong demand. If the price premium does not evaporate, market cap will remain above $10.5 billion — above analyst estimates but currently short of FCA chief executive Sergio Marchionne’s personal estimate of more than $11 billion.
Another 10-percent stake is being held by the Ferrari family, while 80 percent will be distributed to FCA shareholders.
Analysts will be watching to see if Ferrari can complete its spinoff and raise its production cap from 7,000 to 9,000 units without diluting the exclusive brand and eroding competitiveness in the booming high-end segment.
Image by Ronan Glon.
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