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Ferrari debuts on the NYSE to see its shares racing higher

by , 21 October 2015

Today, sports car maker Ferrari listed on the New York Stock Exchange.

Investors received the listing well and in spite of its high initial public offering price, shares soared on its first day of trade.

Let's take a closer look at what happened…

Ferrari only put 10% of its shares up for sale

Ferrari, with the apt ticker of RACE, saw its shares floating on the NYSE today, says Business Insider. Ferrari “priced its IPO at the higher end of the expected range of $48 to $52”.

This comes four months after the company announced its plan to list before the end of the year.

It debuted at $60 a share, a 15% rise over its IPO price, adds Business Insider.

Ferrari sold just 10% of its shares in its IPO, raising $893.1 million for Fiat Chrysler, which has as 80% stake, says the BBC. At $60 a share, this values the company at $10 billion.

The Ferrari family owns the remaining 10% of the company, adds the BBC. On Ferrari’s listing, Fiat Chrysler shares “fell more than 4%”.

The reason Ferrari listed

Listing Ferrari on the stock exchange will help Fiat Chrysler funds its “€48 billion investment programme,” notes Bloomberg. Fiat Chrysler will distribute its remaining holding in Ferrari to its own shareholders next year.

Ferrari’s successful listing comes as other companies have had issues with their new listings in the US, adds Bloomberg. Out of three companies due to list in just one week this month, one cancelled its sale, one “priced shares below a marketed range” and another delayed its IPO.

At time of writing, shares in Ferrari were trading at $55.80 a share, 7.37% up for the day.

So not a bad start for the supercar maker. Time will tell how it performs.

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Ferrari debuts on the NYSE to see its shares racing higher
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