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Ferrari races onto NYSE

Xinhua, October 22, 2015 Adjust font size:

Italian luxury car maker Ferrari went Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) Wednesday. Its shares, trading under the ticker symbol of RACE, soared in their public debut.

Ferrari priced its IPO offering at 52 U.S. dollars, the top of a previously announced range from 48 dollars to 52 dollars, showing investors' strong interest for the company. In midday trading, shares of Ferrari jumped almost 10 percent to 56.98 dollars.

The luxury car manufacturer used to be a subsidiary of Fiat Chrysler Automobiles N.V. (FCA). This IPO is intended to be part of a series of transactions to separate Ferrari from FCA. The FCA sold 17.2 million shares this time, about 10 percent of Ferrari in this IPO, and raised 893 million dollars.

In addition, underwriters have a 30-day option to purchase an aggregate of up to 1.7 million common shares of Ferrari from FCA. UBS Investment Bank is acting as Global Coordinator for the offering.

Following completion of this offering, FCA expects to distribute its remaining ownership interest in Ferrari to FCA shareholders at the beginning of 2016.

Analysts said Ferrari is an unique IPO as the primary attributes are the extreme identification for the customers of its brand name.

Ferrari is among the world's leading luxury brands focused on the design, engineering, production and sale of the world's most recognizable luxury performance sports cars. The company designs, engineers and produces its cars in Maranello, Italy, and sells them in over 60 markets worldwide.

Its history and the image enjoyed by its cars are closely associated with its Formula 1 racing team, Scuderia Ferrari, the most successful team in Formula 1 history.

From the inaugural year of Formula 1 in 1950 through the present, Scuderia Ferrari has won 224 Grand Prix races, 16 Constructor World titles and 15 Drivers' World titles, including most recently the Constructor World title in 2008.

Sergio Marchionne, chairman of Ferrari, said Wednesday the company currently produced 7,000 cars per year, and they need to grow the demand side.

"We targeted at 9,000 (cars) by 2019. The world is a big place, we will find 9,000 customers deserve the car," he said. Enditem