Report – Ferrari’s IPO is now oversubscribed

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Ferrari NV’s upcoming 10 percent holding initial public offering has seen the interest from investors in the luxury supercar maker higher than the bulk of shares available throughout its price range. According to people that have knowledge of the matter and talked under condition of anonymity with Bloomberg, investor interest has indicated to bankers as of last week the demand would by far outstrip the supply at hand, with the sources pointing the predictions were spot on – with the books set to close across all regions at 4 p.m. on Monday. The huge interest in Ferrari comes amid investors being weary of other IPOs and as the global car industry has been rocked by the massive diesel emissions scandal at Volkswagen AG. The transformation of the iconic sports car maker into an independent company and the New York Stock Exchange listing has been in the works for around a year and it’s crucial for Fiat Chrysler Automobile’s need to fund a 48 billion-euro ($54.6 billion) investment strategy that seeks to expand the reach of the Jeep, Alfa Romeo and Maserati marquees worldwide. FCA chief executive officer and Ferrari chairman Sergio Marchionne, has been on the road in London, New York and at Ferrari’s home in Maranello, Italy, with the IPO story to convince potential investors. According to the sources, final pricing might be revealed late Tuesday and the trading would be initiated on Wednesday. Ferrari will offer up to 18.89 million shares, which is 10 percent of the company, with pricing ranging between $48 and $52 each, read a filling with the US Securities and Exchange Commission. Via Bloomberg