Marchionne Sees Ferrari’s Value Exceeding $11 Billion in IPO

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Sergio Marchionne
Fiat Chrysler CEO Sergio Marchionne. Photographer: Andrew Harrer/Bloomberg

Sergio Marchionne, chief executive officer of Fiat Chrysler Automobiles NV, expects its Ferrari SpA supercar-maker unit to be valued “at least” at 10 billion euros ($11 billion) in an initial public offering scheduled this year.

“There are clear expectations from ourselves as Ferrari brand is unique,” Marchionne said Friday at the presentation of the new subcompact Fiat 500 in Turin, Italy. “There is also a scarcity value as we are just selling a 10 percent stake.”

Fiat Chrysler announced plans last year to sell 10 percent of Ferrari and distribute its remaining 80 percent stake to Fiat Chrysler investors. Piero Ferrari, the son of founder Enzo Ferrari, also owns 10 percent and plans to keep his holding. Getting the most out of the listing is crucial for Marchionne’s plans to fund a 48 billion-euro investment plan aimed at lifting Fiat Chrysler deliveries to 7 million cars by 2018.

Fiat Chrysler shares have risen about 33 percent this year, boosting its market capitalization to 16.6 billion euros. Valued at 10 billion euros, Ferrari would represent about 60 percent of the value of the group.

Ferrari, whose logo features the flag colors of its home nation Italy, plans listing on the New York Stock Exchange as a Dutch holding with its fiscal residence in the U.K., Marchionne said Friday. This would mirror the multi-national structure used for parent company Fiat Chrysler.

Marchionne said the operative Ferrari unit will continue to be based in Italy and pay taxes there. Creating a Dutch Ferrari holding shows “the world has changed and required capacity from countries to adapt,” Marchionne said.

Marchionne said last month that Ferrari could be listed in New York Oct. 13 after the IPO was delayed for a tax issue.

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