Ferrari's much anticipated initial public offering (IPO) launch could finally take place as early as Friday.
The company is said to be aiming to reach around $1 billion although pricing may be fully determined by the middle of October. The IPO is said to be handled by a Dutch Parent company with Ferrari confirming (PDF) in a press release that it will stay in Italy and remain organized under the provisions of Italian Law. It will also continue as a tax resident in the country.
Early estimates show that Ferrari's IPO may have a valuation of almost $11 billion which could further mean that the company makes up around 60 percent of Fiat Chrysler Automobile's (FCAU) value as a company.
Share estimates reveal that Fiat Chrysler intends to provide investors with 10 percent while 80 percent is surely going to current FCAU shareholders. The remaining 10 percent will be intended for Piero Ferrari, the son of company founder Enzo Ferrari.
In 2014, Ferrari had a revenue of $3.09 billion and a net income that reached $263 million. This year's second half reveal that it has already earned a revenue of $1.55 billion with a net income amounting to $158 million.
Parent company Fiat Chrysler plans to distribute in full its Ferrari stake to shareholders in early 2016.
Rumors are saying that Amedeo Felisa, Ferrari's CEO, has plans to leave his post prior to the IPO. However, reports also indicate that Felisa will still remain.
Sergio Marchionne, Fiat Chrysler chief, said that there were no talks made on Felisa's potential successor. Felisa, who is now 70 yrs. old, joined Ferrari in 1990 as an engineer. He has been Ferrari's CEO since 2008 following the end of term of Jean Todt.
"He (Felisa) will not leave before the IPO and the question of succession is one we have to deal with not only with Felisa but with other key positions inside the group," said Marchionne. "At the right time we will provide the right solution."
Ferrari is known for its legacy in high-performance motoring. The name is no doubt one of the most popular brands among car fanatics. Its range of vehicles now has 6 models wherein some are available in a number of configurations.
Currently, the company's most affordable model is the California T which is being priced at around $200,000. In contrast, its LaFerrari is said to retail for over $1 million and would require potential customers to get an exclusive invite from Ferrari prior to purchasing.
