Ferrari makes Milan stock market debut

MILAN - Sports carmaker Ferrari is following up its successful Wall Street listing with a stock market launch in Milan, as it begins a new era as a stand-alone company free of the mass-market associations of its former parent, Fiat Chrysler.

See Full Article

The company famed for its Formula 1 racing machines and coveted red roadsters began trading Monday morning, the first business day of the year, at 43 euros ($47) under the RACE ticker. The shares slipped to 41.75 euros in a broadly lower market, were briefly suspended and then climbed to 41.90 euros.

Ferrari made its public debut on the New York Stock Exchange in October. It closed out 2015 at the price of $48 (about 44 euros).

The new company, which completes its separation from Fiat Chrysler Automobiles SpA, is controlled by Exor SpA, the Agnelli family holding company that also controls Fiat Chrysler, with a 23.5-per cent share, and Piero Ferrari, founder Enzo Ferrari's son, who retains a 10-per cent stake.

"With the listing, a new chapter is opened," for Ferrari, said its chairman, Sergio Marchionne, who is also CEO of Fiat Chrysler. Marchionne called the development a "new threshold, a new starting line" for the prestigious brand.

But he is treading carefully with any plans to expand the Ferrari brand, whose value relies on its exclusivity. Marchionne wants to turn Ferrari into a luxury goods company in order to profit more from the brand's prestige.

Ferrari is "probably the most difficult brand extension" to develop, Marchionne told a news conference, and so the company intends to avoid doing "anything big and stupid."

"If you put a Ferrari sticker on a toaster it doesn't go faster," said Marchionne.

Back in October, for the NYSE listing, Fiat Chrysler listed a 10 per cent stake at $52 a share, valuing the company at nearly $10 billion.

For the parallel Milan listing, Fiat Chrysler distributed its remaining 80 per cent to its shareholders, at a rate of one common share of Ferrari for every 10 shares of Fiat Chrysler.

The spinoff will help Fiat Chrysler reduce debt and fund ambitious plans to expand higher-margin luxury brands Alfa Romeo and Maserati.

Until the October launch, the automaker, based in the northern Italian town of Maranello, had been a private company since its founding in 1929 by Italian sports car driver Enzo Ferrrari.

In 1969, Fiat bought a 50 per cent stake in the company, which it then increased to 90 per cent in 1988.

As for Ferrari's race car mission, Marchionne said that the biggest challenge is to bring back the team as a Formula 1 winner.

-----

AP writer Frances D'Emilio contributed from Rome.



Advertisements

Latest Economic News

  • Keystone XL pipeline gets OK from U.S. State Department

    Economic CBC News
    Calgary-based TransCanada says it has received a presidential permit from the U.S. State Department that allows it to build the long-delayed Keystone XL pipeline. The pipeline had been blocked by President Barack Obama, who said the it would do nothing to reduce fuel prices for U.S. Source
  • Rest in peace, CSB: A eulogy for the Canada Savings Bond

    Economic CBC News
    The Canada Savings Bond, a ubiquitous savings vehicle that grew from humble postwar origins into a household name by the 1980s, died this week after a lengthy decline. She was 71 years old. The official cause of death was no longer being "a cost effective source of funds. Source
  • Morneau says he understands importance of transparency for gender-based analysis

    Economic CTV News
    OTTAWA - Finance Minister Bill Morneau said he recognizes the importance of transparency when it comes to scrutinizing how government spending impacts men and women - as well as other groups of people - in different ways. Source
  • Trump administration expected to approve Keystone XL today

    Economic CTV News
    WASHINGTON - The much debated Keystone XL pipeline project is expected to be approved by the U.S. government today. The White House isn't elaborating on today's announcement, but the Trump administration has repeatedly said it supports the project. Source
  • TransCanada gets State Department's OK for Keystone XL pipeline

    Economic CTV News
    CALGARY -- TransCanada says it has received a presidential permit from the U.S. State Department that allows it to build the long-delayed Keystone XL pipeline. Former president Barack Obama rejected the previous Keystone proposal saying it wasn't in the U.S. Source
  • Asian stocks mixed as U.S. health bill delay casts doubts

    Economic CTV News
    HONG KONG - Asian stock markets are mixed Friday after a U.S. vote on a health care bill was delayed, raising doubts among investors over whether U.S. President Donald Trump can push through his business friendly agenda. Source
  • Uber Canada hits back at Liberal plan to charge tax on rides

    Economic CBC News
    Uber Canada says it wants the federal government to hit the brakes on plans to charge GST/HST on ride-hailing fares. Finance Minister Bill Morneau unveiled the proposed tax in Wednesday's budget. An executive with Uber's Canadian operations on Thursday called it a "tax on innovation" that would hurt Uber drivers and users. Source
  • Uber decries new tax measures on ride-hailing announced in federal budget

    Economic CTV News
    TORONTO -- Uber is crying foul over new tax measures announced in the federal government budget that would see the company subject to the same sales tax rules applied to taxi drivers. The Liberal government's budget Wednesday included amending the definition of a taxi business to include ride-hailing services such as Uber and subject them to the same GST and HST rules as taxis. Source
  • Ontario piloting financial literacy classes

    Economic CTV News
    TORONTO -- Students in more than two dozen Ontario high schools are taking part in a pilot project aimed at teaching them financial skills necessary to succeed in the new global economy. The Liberal government says the project, which is underway in 28 schools, is part of its promise to improve financial literacy education. Source
  • Air Miles suspends redemption of Cash Miles in stores after some are 'stolen'

    Economic CTV News
    The loyalty program Air Miles says that it is temporarily suspending the ability to redeem “Cash Miles” in stores after the company realized “Cash Miles have been stolen” in a “small number of in-store Air Miles Cash transactions. Source