Today, Ferrari began its life as a listed company on Wall Street with its partial floatation on the New York Stock Exchange.
As is traditional with high profile listings, senior people at Ferrari were invited to ring the New York Stock Exchange’s opening bell at 9.30am local time.
Amongst the bell ringing crew was John Elkann, a member of the Agnelli family that controls much of Fiat Chrysler’s voting stock, and Ferrari chairman and Fiat Chrysler boss Sergio Marchionne.
Ferrari shares were listed at US$52 ($72) a piece and are shown under the ticker code RACE. When the trading floor opened, Ferrari shares began trading hands at US$60 ($83), but things soon settled down and the shares closed at US$55 ($76) at the end of the trading day.
Prior to today’s floatation, Fiat Chrysler (FCA) held a 90 percent stake in the exotic car maker, with the remainder held by Piero Ferrari, son of founder Enzo Ferrari.
The Italian-American car maker has listed 10 percent of Ferrari on Wall Street. The 17,175,000 ordinary shares put on the market today has raised around US $893 million ($1.2 billion) before fees and taxes.
Next year, Fiat Chrysler will distribute the remaining 80 percent of Ferrari to its own shareholders. Long term investors in Ferrari or Fiat will gain preferential voting shares, enabling the Ferrari and Agnelli families to retain effective control of the supercar maker.
It’s understood that FCA will use the proceeds from the listing to reduce borrowing costs and help fund on-going product development plans for its multitude of brands, including Alfa Romeo, Maserati, Fiat, Chrysler, Dodge, Jeep and Ram.
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