link.png Ferrari race starts today with stock exchange debut← Back


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Today Ferrari, the world-famous high-end sportscar manufacturer, starts trading on the New York Stock Exchange under the ticker symbol RACE.
 
Yesterday, the initial public offering raised $894 million, exceeding expectations and placing the 17.2 million available shares at the top end of the price range. This strong performance values Ferrari at $9.8 billion.
 
The Ferrari story started shortly after the second World War: having worked in the automobile industry, Enzo Ferrari founded his company in 1947. It rapidly became known for its racecars and is now also synonymous with high-end performance cars. The company produces up to 10,000 vehicles a year, in order to control the brand’s exclusivity.
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Ferrari is currently controlled by Fiat Chrysler: Fiat first invested in the company in 1965, and went on to acquire a 50% stake in 1969. When Enzo Ferrari died in 1988, Fiat Chrysler's stake then increased to 90%, which is where it stands to this day.
The spin-off was announced last year and is part of a strategy established in order to alleviate debt as well as to enable Fiat Chrysler to launch a new program aimed at expanding other car manufactures under its umbrella. Keen to maintain Ferrari’s prestige as a luxury brand, only a limited number of shares were offered up for public trading. Indeed, Fiat Chrysler is only selling 10% of its stake in the company and intends to distribute its remaining shares to stakeholders at the beginning of 2016. As a consequence, Agnellis will become the largest shareholder of the luxury car manufacturer whilst Piero Ferrari, son of founder Enzo Ferrari, will remain in possession of a 10% stake and is said to become a billionaire thanks to the IPO.
 
By going public, Ferrari and its iconic prancing horse are entering into a new stage of the company’ history.