Ferrari SpA is close to filing for an IPO says Fiat Chrysler Automobiles NV CEO Sergio Marchionne. ‘We are days away from filing the prospectus,’ he announced at the Toronto Global Forum.
JPMorgan Chase & Co. and Goldman Sachs Group Inc. have been selected to sell 10 percent of Ferrari shares to investors, and UBS Group AG in New York will manage the IPO later this year. Fiat Chrysler may also consider a secondary listing in Milan according Marchionne.
This is an effort by the Fiat Chrysler group to raise funds and cover some of the company’s debts. Fiat Chrysler also wants to fund a $52 billion investment program that is focuses on expanding the Alfa Romeo, Jeep, and Maserati brands. The automobile company is also looking to merge with another automaker in order to share the costs of developing new vehicles and technology, but potential partners like Ford Motor Co. and GM have shown no interest.
Marchionne said earlier this month that he expected the Ferrari unit to go for not less than $11 billion, which is about 60% of the parent company’s net worth. Analysts however, estimate Ferrari to raise about $9.6 billion.
