Fiat Chrysler Automobiles NV (NYSE:FCAU)’s stock was up by 1.88 percent in after hours trading after closing flat at US$15.94 a share on Tuesday. Investors are closely monitoring shares of Fiat Chrysler Automobiles NV (NYSE:FCAU) on news that sports car manufacturer Ferrari has priced its IPO at US$52 a share.
The price was the top end of an expected price range and values the Italian car manufacturer at about US$9.8 billion. Ferrari raised about US$894 million for its corporate parent, Fiat Chrysler.
The shares will start trading Wednesday, listed on the New York Stock Exchange under the symbol RACE.
Chairman Sergio Marchionne, who is also Fiat Chrysler’s chief executive officer, will ring the opening bell at the NYSE Wednesday morning (US time) with other executives.
Despite its IPO, Ferrari will remain controlled by a small number of investors, with Piero Ferrari to continue holding on to its 10 percent stake while Fiat Chrysler, which sold about 10 percent of the company, plans to distribute the 80 percent that it still owns to its own investors.
For H1 of this year, Ferrari earned EUR141 million (US$160 million) in net profit, a 10 percent rise from a year ago.
On Tuesday, Fiat Chrysler Automobiles NV (NYSE:FCAU)’s stock was flat to trade at US$15.94 at the close. – BusinessNewsAsia.com