Ferrari had $3 billion revenue last year.
By Raif Karerat
WASHINGTON, DC: Buckle up, traders, because Fiat Chrysler has officially filed plans to sell up to 10 percent of its legendary Ferrari brand during a highly anticipated initial public offering.
According to Fiat Chrysler boss Sergio Marchionne, who spoke to Forbes, the IPO is slated for October of this year.
While the amount of shares being offered and the price range for the IPO haven’t been disclosed, Ferrari did say it plans to list the stock on the New York Stock Exchange, according to a filing with the Securities and Exchange Commission on Thursday.
Despite the fact that the Maranello, Italy-based automaker only produces about 7,200 cars annually, it generated more than $3 billion in revenue last year and a profit of $423 million, according to the Detroit Free Press.
Fiat Chrysler had previously estimated the Ferrari division is valued at about $11 billion, Bloomberg reported, and the stock sale is part of the Italian automaker’s move to cut debt.
“The Ferrari spin-off is guaranteed to be the most high-profile IPO of the year and many financial types expect the shares to go 0-to-60 faster than the cars themselves once public trading begins,” reported Fortune.
After the spinoff, Fiat Chrysler Automobiles will no longer have an ownership stake in Ferrari. However, Exor, an investment firm controlled by Fiat legacy John Elkann, will. Elkann, the great-great-grandson of Fiat founder Giovanni Agnelli, is both the chairman of Fiat Chrysler and the chairman of Exor.