NEW YORK: Ferrari NV priced its initial public offering at the top of expectations on Tuesday, raising US$893 million, as drivers enamoured with the luxury sports car maker snapped up its shares alongside institutional investors, defying a choppy market.
Ferrari, controlled by Fiat Chrysler Automobiles NV (FCA), pulled out all the stops to market itself to some of its cars' owners as well as Wall Street, and also limited the offering to a 9.1 percent stake in the company.
The strategy paid off, as the IPO was priced in New York on Tuesday at US$52 per share, the top end of its indicated US$48 to US$52 per share range, according to people familiar with the matter. The IPO gives Ferrari a market capitalisation of around US$9.8 billion.
The sources asked not to be identified because the pricing details of the IPO were not yet public. Ferrari did not immediately respond to a request for comment.
The proceeds will be used to help fund FCA's ambitious growth plan centered around the revamp of its Alfa Romeo, Jeep and Maserati brands. A successful listing will bolster FCA's finances at a time when its calls for a merger partner have fallen on deaf ears.
