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Sergio Marchionne Expects Ferrari IPO is Worth $11 Billion

Motor Trend logo Motor Trend 7/6/2015 Jake Holmes
Sergio Marchionne Expects Ferrari IPO is Worth $11 Billion

In a matter of months, FiatChrysler Automobiles is expected to sell a 10-percent share of Ferrari, and CEO Sergio Marchionne has high hopes for the brand's upcoming IPO. Marchionne told reporters over the weekend that the Ferrari IPO will be valued "at least" at the equivalent of $11 billion, according to Bloomberg.

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"There are clear expectations from ourselves as the Ferrari brand is unique," Marchionne told reporters. "There is also a scarcity value as we are just selling a 10 percent stake."

Sergio Marchionne With NYSE© Provided by MotorTrend Sergio Marchionne With NYSE

As of writing, Fiat Chrysler Automobiles NV has a market capitalization of about $18 billion -- meaning that if Marchionne's prediction for the IPO valuation is correct, Ferrari would be worth about 61 percent of the entire company.

Fiat Chrysler announced in October 2014 that it would spin-off Ferrari S.p.A. and sell 10 percent of the company's shares on the New York Stock Exchange in an initial public offering. FCA had initially said it would sell about 100 million shares, with the remaining 90 percent of Ferrari shares offered to existing FCA shareholders. The move will separate Ferrari from the rest of FCA's business areas, and the money earned from the IPO would help fund development of new models.

Although an official date has yet to be confirmed, Marchionne has said that the Ferrari IPO could take place in mid-October this year.

Source: Bloomberg

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