Ferrari is one of the most storied sports car makers on the planet with its exotic sports cars being lusted after by car fans all around the world. Ferrari also has a storied racing history in F1 and many other racing series. Fiat Chrysler Automobiles filed for a Ferrari IPO this month in a move that will take the Italian carmaker public for the first time in its history.
The Ferrari division will see its name change to Ferrari N.V. and its stock will be listed on the New York Stock Exchange. Fiat Chrysler Automobiles has owned 90% of Ferrari since 1988. With the filings, Ferrari N.V. will become a separate and publicly owned company. It’s unclear right now how many shares will be offered for purchase or how much those shares will sell for.
Ferrari’s Rich Heritage
Ferrari’s journey began in 1939 when Enzo Ferrari founded Auto Avio Costruzioni, which later became Ferrari S.p.A. The brand quickly became synonymous with luxury, performance, and exclusivity. Over the decades, Ferrari has produced some of the most iconic sports cars in automotive history, such as the Ferrari 250 GTO, the Ferrari F40, and the Ferrari LaFerrari. Each model has its own unique story and has contributed to the brand’s legendary status.
Ferrari’s success isn’t limited to road cars. The company has a long and illustrious history in motorsport, particularly in Formula 1. Ferrari is the oldest and most successful team in the history of the sport, with numerous Constructors’ and Drivers’ Championships to its name. This racing pedigree has helped Ferrari maintain its image as a manufacturer of high-performance vehicles.
The IPO and Its Implications
Statements by FCA CEO Sergio Marchionne in the past have noted that only 10% of the shares will be offered to the public. Stock in Ferrari could be as rare as its automobiles are on the roads. 80% of total shares in Ferrari N.V. will be distributed to shareholders with the last 10% remaining with Piero Ferrari, son of Ferrari founder Enzo Ferrari.
The decision to go public is a significant milestone for Ferrari. It opens up new avenues for investment and growth, allowing the company to raise capital that can be used for research and development, expanding its product line, or even entering new markets. However, it also comes with challenges. As a publicly traded company, Ferrari will be subject to greater scrutiny from investors and regulatory bodies. This could impact the way the company operates and makes decisions.
One of the key questions surrounding the IPO is how it will affect Ferrari’s brand image. The company has always been seen as an exclusive, high-end manufacturer. Going public could potentially dilute this image if not managed carefully. However, given the limited number of shares being offered, it seems that Ferrari is keen to maintain its aura of exclusivity.
Another interesting aspect to consider is the potential impact on Ferrari’s customer base. The brand has a loyal following, and many of its customers are also investors. The IPO could strengthen this relationship, giving Ferrari enthusiasts a new way to engage with the brand. On the other hand, it could also attract a new type of investor who is more interested in financial returns than in the cars themselves.
In conclusion, Ferrari’s decision to go public marks a new chapter in the company’s storied history. While it brings new opportunities for growth and investment, it also comes with its own set of challenges. How Ferrari navigates this transition will be crucial in determining its future success. The limited number of shares being offered suggests that the company is keen to maintain its exclusive image, even as it opens up to new investors. This delicate balance will be key to Ferrari’s continued success in the years to come.
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