Ferrari NV (NYSE:RACE) started trading on the NYSE today, and it is an exciting Wall Street debut. Shares of the company jumped 17% after the initial public offering. The Italian high-end car manufacturer is now 80% owned in Fiat Chrysler Automobiles (NYSE:FCAU), after Fiat Chrysler sold a 10% stake in order to raise money. An Additional 10% stake are owned by the son of Ferrari’s founder, Piero Ferrari.
The successful initial public offering helped Fiat Chrysler and Ferrari to raise about $900 million. Fiat Chrysler’s will continue to own 80% of the company for several more month, after which the shares will be distributed to Ferrari’s shareholders early next year, eventually separating completely. By that time, Fiat Chrysler is expected to raise more than $4 billion.
Ferrari’s production is very limited, last year only 7,255 cars were produced. Despite that, or perhaps because of that, Ferrari has showed productive results, as demand for their very expensive cars is strong.
CEO of Fiat Chrysler Automobiles, Sergio Marchionne , said in an interview with CNBC, "What is at the heart of the brand is this intimate relationship between us and the customer base… Therefore it would be almost suicidal to try to expand volumes to the detriment of that relationship."