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Ferrari Reaching For $12.4B Valuation for IPO

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The supercar maker may be valued at more than $12.4 billion ahead of its initial public offering, which could happen as early as Friday, Bloomberg (via Automotive News) reported.

Ferrari may price its shares Friday night when it offers 10 percent of the Maranello-based automaker to the public. The remaining ownership of the carmaker will remain largely with the same ownership group, comprised mostly of the Agnelli family and Piero Lardi Ferrari.

Fiat Chrysler Automobiles CEO Sergio Marchionne said in July that Ferrari would be worth roughly $11 billion, which analysts balked at being a little ambitious. Since then, Ferrari’s value may have climbed as Marchionne told investors that Ferrari wasn’t necessarily an automaker, but rather a luxury brand that could be more profitable than a traditional carmaker.

FCA stock rose early Friday partly on the news that Ferrari’s IPO could go better than expected. Buying cooled later in the day as investors wait to see what the United Auto Workers union does with the newly proposed contract with the company.

Ferrari’s public sale is part of a cash-raising effort from Marchionne to invest more money into FCA. Spinning off Ferrari could help FCA raise $5 billion needed for investments in its other cars. Or perhaps a hostile takeover of General Motors.

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