Skip to main content

Ferrari's IPO: Bullish about the Prancing Horse?

Ferrari 458 Spider
Photo Credit: Chris Nagy


Car collectors enjoy no only the thrill of owning a vehicle but the culture surrounding the popular brands that have driven our passions and emotions. When collecting Ferrari, the love can be enjoyed with the possession of a multimillion dollar classic like a highly rare 250 GTO or something as little as a one dollar die-cast car. Ferrari aficionados also take pleasure the in full range of merchandise surrounding the ‘Prancing Horse’ brand. Hats, jackets, sunglasses, watches and picture frames are just a few officially licensed items offered to collectors of the Ferrari brand. Ferrari is one of the most coveted brands when it comes to merchandising. Now, for the latest collectible item, why not own a piece of the company ambitious founded by the legendary motorsport figure Enzo Ferrari?

Selling 10 percent of the Ferrari company in an IPO (Initial Public Offering) release on the New York Stock Exchange, the first shares will be offered at $52 a share starting Wednesday morning. Listed on the NYSE (New York Stock Exchange) under the RACE stock symbol, Ferrari’s IPO appeared to have been concealed under the issuer name New Business Netherlands N.V. (NYSE still lists the stock under that title).

After initial estimates that the evaluation of Ferrari would be appraised between 5 and 7 billion dollars, the value of the auto manufacturer has been rated near 10 billion dollars with the share price. The stock sale is estimated to bring close to a billion dollars to Ferrari’s parent company FCA (Fiat Chrysler Automobiles). While the Ferrari brand has been part of Fiat and most recently the Fiat Chrysler Automobiles (FCA) conglomerate, the sports car brand had been permitted to remain a mostly autonomous corporate function.

The initial stock price for Ferrari is one of the richest of any automaker in recent memory. In comparison, FCA’s IPO last year priced a volume of 87 million shares at only for $11. It’s also interesting to note Tesla Motors’ IPO was priced at $17 per share.

In order to sell investors on Ferrari, the Italian sports car builder provided a bullish pledge. By 2019, Ferrari plans to sell 9,000 vehicles per year that equates to a 30 percent increase over current model numbers. The additional sales volume can increase revenue but some purists to the brand are concerned of saturation of the market with Ferrari vehicles. A fine balance will obviously need to exist between meeting demands for the popular sports cars like the Ferrari 488 GTB and insuring the storied brand maintains exclusivity. At 9,000 vehicles, Ferrari will still be well under Porsche and is only one-quarter the volume of vehicle compared to 2014 Chevrolet Corvette Stingray production.

Comments

Popular posts from this blog

Formula 1: Lewis Hamilton Quickest In Qatar Qualifying

Photo Credit: LAT Images for Mercedes-Benz Grand Prix Ltd. Saturday’s qualifying for the inaugural Formula 1 race in the Arab nation of Qatar has assembled what is certain to be a dramatic opening lap showdown between this season’s title contenders Lewis Hamilton and Max Verstappen. In setting the grid for Sunday’s 57-lap main event on the fast, high grip 5.380-kilometer Losail International Circuit, it was the driver of the #44 Mercedes-AMG Petronas Formula One Team race car that took honours. Lewis Hamilton’s pole-winning lap time of 1-minute, 20.827 seconds in the final Q3 session putting a cap on a time trial where the seven-time World Drivers’ Champion handily controlled through the three sessions. Joining Hamilton on the front row of the 2021 Qatar Grand Prix will be Max Verstappen’s Red Bull Racing machine. The Honda-powered entrant was 0.455 seconds slower than the rival Mercedes race car. With the race at Losail being the third-to-last event on the 2021 Form

IMSA WeatherTech SportsCar Championship: Acura Grand Prix of Long Beach Review

Photo Credit: Automobili Lamborghini S.p.A. untitled A companion to the NTT IndyCar Series finale weekend on the streets of Long Beach, the IMSA WeatherTech SportsCar Championship staged a 26-car race on Saturday consisting of DPi, GTLM and GTD class machines. With the conclusion of the 1-hour, 40-minute Acura Grand Prix of Long Beach sports car event, the overall winner was the #31 Whelen Engineering Racing Cadillac shared by the driving duo of Felipe Nasr and Pipo Derani. The victory was a decisive weekend for the Whelen Engineering Racing team that had scored the pole position and went on to take the checkered flag with a 10.95-second gap over the #01 Cadillac fielded by Chip Ganassi Racing with Kevin Magnussen and Renger van der Zande. Corvette Racing enjoyed a dominant outing in the GTLM category. Nick Tandy and Tommy Milner in the #4 Chevrolet Corvette C8.R beat the #3 car shared by Antonio Garcia and Jordan Taylor. Only three GTLM class vehicles ran at Long Be

Is More Imagination Needed Towards Indy 500 Pace Car Selection?

Photo Credit: General Motor/Chevrolet This weekend, the Indianapolis 500 will be run for its 100th time. A primary focus around a 500-mile auto race around a historic 2.5-mile race track has resulted in a far amount of traditions. Some of these traditions such as the Fast 9 qualifying shootout and the honorary starter are newer aspects while one of the oldest is the ceremonial pace setter used to lead the field to the green flag. A staple of the Indy 500 since the first race in 1911, the pace car history ranges from a Stoddard-Dayton roadster to a Chevrolet Corvette Z06 used in last year’s event. This year’s Indianapolis 500 will feature an all-new 2016 Chevrolet Camaro SS trimmed in a special preview of the 50th Anniversary Package. The beautiful Abalone White sixth generation Camaro convertible features a 455-horsepower, 6.2-liter V-8 LT1 engine perfect for maintaining pace lap speed ahead of a 33-car contingent of machines set to run at speed of 230 miles per hour. A tradi