Inside 'Project Owl,' the $10 billion IPO that Ferrari just filed
We poked around in the the SEC documents and found the most interesting bits:
The Ferrari IPO has two secret internal company names.
The IPO is mysteriously code-named "Project Owl" when you pull the filing up in a web browser. And the company itself is currently flying under the radar in the SEC database as "New Business Netherlands NV." It will be renamed "Ferrari" closer to the public sale of stock.
Here's a more detailed look at the company's finances.
- 2014
- Ferrari shipped 7,255 cars
- Net revenues: €2,762 million
- Net profit: €265 million
Ferrari is both profitable and growing, but slowly:
About 1,000 fewer Ferraris were sold in 2014 compared to the year before (yet Ferrari took on more employees).
Don't buy this stock for explosive growth. Ferrari is seeking only "controlled growth":
Controlled growth in developed and emerging markets. While we will continue to pursue a low volume production strategy and maintain our reputation for exclusivity, we intend to respond to growing demand, both in emerging markets as well as in response to demographic changes and the growth in the size and spending capacity of our target clients. We believe we can grow in a controlled manner while preserving the exclusivity of our brand by continuing to focus on distinct market segments and maintaining a strong pipeline of new car launches.
Ferrari is cash-flow negative.
There are €5 billion in assets on the balance sheet, but €1 billion of that is in intangible assets.
The Ferrari family will maintain control of Ferrari, the Wall Street Journal notes:
Both Exor and Piero Ferrari will immediately qualify for Ferrari's "loyalty voting program" that gives them two votes for every share they hold. That means Exor would hold about 36% of the voting power, Piero Ferrari would have about 15%, and public shareholders would hold about 49%. Exor, in particular, "will have significant influence over us," the filing says.
The Ferrari factories are built on top of earthquake zones, the SEC disclosure says:
Maranello and Modena are located in the Emilia-Romagna region of Italy which has the potential for seismic activity. For instance, in 2012 a major earthquake struck the region, causing production at our facilities to be temporarily suspended for a day.
Ferrari will stay organized in the Netherlands under Dutch law, to shield it from American lawsuits.
As a result, it may be difficult for U.S. investors to effect service of process within the United States upon these persons. It may also be difficult for U.S. investors to enforce within the United States judgments against us predicated upon the civil liability provisions of the securities laws of the United States or any state thereof.