Do not invest more money than you can afford to lose.
The shares listed under the stock ticker that read “RACE” raised $893 million for Fiat Chrysler Automobiles NV, funds that FCA will perhaps employ towards reviving ailing brands under its wing like Alfa Romeo, Jeep, Chrysler, Ram and Fiat.
The luxury vehicle maker floated 17.18 million shares to the public, which is almost nine percent of the company, raising about $900 million in public capital in its debut on the New York Stock Exchange (NYSE), CNBC News noted.
The EGM is scheduled to approve a demerger pursuant to which FCA would transfer all of the shares held by it in Ferrari N.V.to FE Interim B.V., a newly-formed Dutch company, with FE Interim B.V. issuing common shares and special voting shares to holders of FCA’s corresponding shares (“Demerger”).
The broader IPO market has been shaky, with recent IPO delays from Neiman Marcus Group Inc. and Albertsons Cos. and a canceled offering from mobile provider Digicel Group Ltd. The rest of Fiat Chrysler’s 90 percent stake in the Prancing Horse will be distributed to existing shareholders. As strong demand from investors pushed up the price to $60 early on, shares ended up slightly at $55 each at the end of the day.
One of Ferrari’s main selling points is exclusivity and Sergio Marchionne, CEO of FCA, assured Ferrari fans that the IPO would not be a preliminary step in ramping up Ferrari’s production levels.
