Ferrari, popular? What a shock…
We knew the Ferrari IPO was going to be huge, but we didn’t know how huge. Fiat ChryslerAutomobiles (FCA) is set to spin-off its cash cow later this month, and according to Bloomberg its valuation could come in at $11.2 billion.
That’s a ton of money for an automaker that makes about 7,000 luxury sports cars a year and with no SUV or EV in sight, either. According to the Bloomberg report, about half of Ferrari’s value comes from its brand alone. That’s $5.5 billion for a prancing horse logo and rosso corsa red.
We knew Ferrari would be valued at a ton of cash but what is sort of surprising is the crazy demand for its stock. The report quotes a source close to the situation who says that demand for the available shares may exceed supply by more than 10 times.
Remember that only 10 percent of the company will be publicly traded, with the other 80 percent of shares being dispersed among current FCA shareholders and the remaining 10 percent going to Piero Ferrari, Enzo Ferrari’s son. We’ll know just how much Ferrari is really worth in a few weeks, so stay tuned. By: carbuzz