Monday 25 June 2018

Ferrari IPO urged on HK bourse

Hong Kong, September 2, 2011

Several investment banks have approached Fiat SpA in recent weeks with a proposal to list legendary sports car maker Ferrari on the Hong Kong stock exchange, sources said.

An initial public offering (IPO) could value Ferrari as high as $6.3 billion, according to analysts.

The deal would help it raise funds to pay down its debt of around 5bn euros ($7.2bn). It could also boost the valuation of the Italian company's shares.

'Fiat hasn't made up its mind about the IPO, but is talking with banks about it,' said one source.

Meetings had been held and several others lined up in coming weeks to drum up support for the offering, the source added.

Last year, Fiat, which owns US-based Chrysler, said it was considering an IPO for Ferrari and speculation has grown ever since.

Still, Ferrari chairman Luca Cordero de Montezemolo and Fiat's Marchionne sought to play down a potential deal.

Hong Kong, the world's top destination for IPOs for the past two years, has become the venue of choice for global brands such as cosmetics company L'Occitane International and luggage maker Samsonite International SA, seeking top valuations and deep pocketed investors.

Fashion house Prada SpA raised nearly $2.5bn in June, becoming the first Italian company to go public in Hong Kong.

A Ferrari offering would also be a coup for Hong Kong, which lost out to rival Singapore on the IPO for English Premier League champions Manchester United, worth up to $1bn.

Tags: IPO | Ferrari | HK bourse |

More Capital Market Stories

calendarCalendar of Events