Ferrari’s planned initial public offering later this month will result in a number of things for the high-end car manufacturer, one of which would be the company’s desire to ramp up production from about 7,000 units to around 9,000 units annually by 2019, representing a 30 percent increase.
The storied automaker is expected to begin trading next week at the New York Stock Exchange where it plans to sell 17,175,000 shares to the public as part of its planned spin-off from Fiat Chrysler. Share are expected to be priced at around $48 to $52 each. Financial underwriters like UBS and Bank of America will also have the option to sell an addition 1,717,150 shares. If the company times the IPO market correctly – something that’s not a certainty in the current stock market climate – the company walk away from the shares sale with a value of as much as $9.8 billion.
On the surface, the decision appears to be sound if the company is serious about its plans to increase production in response to what it says is a “growing demand in emerging markets.” It’s what any other company would do if it were in the same situation.
But Ferrari’s a different case altogether because it’s not just any other company. A big part of its reputation as the most desirable supercar manufacturer in the world is its exclusivity. Not everyone can own a Ferrari and even those who do have the financial capacity to buy its models often have to wait as much as a year to get the car. Making these models more accessible to the market could be interpreted as the company losing that halo on its head that endeared it to Ferrari buyers and collectors in the first place.
For its part, Ferrari doesn’t seem to be concerned with the perceived backlash that will come with the IPO and its intention to ramp up production by 30 percent. The company believes that it will still retain its “exclusive” status; it just wants to address the growing demand for its cars, something this public offering can do. It even said as much in its filing, stating that it plans to maintain its reputation of exclusivity and scarcity by “deliberately monitoring and maintaining [its] production volumes and delivery wait times to promote this reputation."
Continue reading for the full story.
from Top Speed http://ift.tt/1LmUZqn
via IFTTT
Aucun commentaire:
Enregistrer un commentaire