Ferrari IPO Delayed Until October
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].
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.
hadn’t’t Ow, my eyes.