Fiat Chrysler CEO says Ferrari IPO will be one of the easiest in history
First, longtime Ferrari Chairman Luca di Montezemolo stepped down - or was forced out, depending on one's interpretation. He was replaced by existing FCA CEO Sergio Marchionne (FCA is Ferrari's parent company).
Then, FCA announced that it would be spinning off Ferrari as a separate company. A Ferrari IPO had been much discussed a few years back, when Fiat was then in the process of completing its acquisition of Chrysler in the aftermath of the financial crisis.
Discussion will soon become reality - and FCA will raise $5 billion to fund Marchionne's plans to expand production, according to Bloomberg.
Not incidentally, Ferrari production is likely to rise. The legendary Italian automaker has capped production at 7,000 cars annually, keeping demand forever unsatisfied. Marchionne would prefer that Ferrari sell something more like 10,000 cars per year.
He might also like to see Ferrari create an SUV.
Marchionne thinks the appetite for Ferrari shares is going to be ferocious.
As Bloomberg's Mark Clothier reported, the CEO - and Ferrari owner - also thinks the IPO, planned for later this year, will be an easy lift for whatever investment banks run the offering.