By on June 7, 2015


When Sergio Marchionne picked the day for Ferrari’s IPO, it looks like he may have ignored the lawyers.

An offering of 10 percent of Ferrari on the open market, originally scheduled for this month, has been pushed back to October.

From the WSJ (via Business Insider):

“The attorney told me we had to wait” until a year has passed since the Oct. 12, 2014, completion of the merger that produced FiatChrysler, said Mr. Marchionne. He didn’t make clear why Fiat Chrysler hadn’t’t considered the issue when it had announced previous timings for the share sale.

Fiat Chrysler is planning to sell 10% of Ferrari in the IPO and distribute the other 80% it owns in the sports-car maker to shareholders. That spinoff is still scheduled for the beginning of next year. Fiat Chrysler shares have surged since the announcement of the IPO and spinoff as investors and analysts debate the value of Ferrari, with estimates ranging from €4 billion to more than €10 billion [$4.4-11.1 billion].

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4 Comments on “Ferrari IPO Delayed Until October...”

  • avatar

    It may be longer than that.

    It’s awful hard to sell off what’s essentially a vanity IPO for all the money and none of the equity. Especially when you’re postponing product development and shopping for someone to merger with/buy you out.

    Considering how The Great Sergio/FCA is conducting itself right now, I’d say it’s an even bet that it doesn’t happen under Fiat ownership.

    • 0 avatar

      You’re leaving out that 80% ownership will be distributed to current FCA stockholders. Once the IPO of 10% establishes the value, those owners will be able to sell/buy stock. I imagine that many will cash in their chips, boosting trading volume.

      The thing is, FCA will benefit only from the IPO proceeds, 10% of the value, so it won’t be a big cash haul, $400 million to $1 billion, based on the $4 billion-$10 billion estimate. The Agnelli family holding company, Exor, owns 31% of FCA and should get that percentage of Ferrari stock, so they’ll be the big winners.

      One of the things any investor should beware of is a company’s management selling off profitable divisions and deferring maintenance in plant and equipment of its core business. That provides operating capital and keeps the stock price high, but hollows out the company over time.

      Investors who look only at stock price are happy, but get a rude shock when all the profitable divisions are gone and the deferred maintenance causes the core business to go deeply into debt to modernize, or goes belly-up when the debt load it already has makes it impossible to borrow.

      This move, and the earlier cancellation of maintenance shutdowns announced earlier, make me wonder if that’s Sergio’s end game. If Maserati and Alfa go on the block, and/or the cash hoard gets distributed to the stockholders, it will be a sign that FCA is in a slo-mo liquidation, with debt holders left holding a $32 billion bag.

  • avatar


    Ow, my eyes.

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