There's a good chance Fiat Chrysler Automobiles could decide to sell more than the originally planned 10 percent of Ferrari during the initial public sale set for later on this year in order to meet strong demand from investors.
"In an ideal world I would like to limit it to 10 percent because that is in line with what we announced," Sergio Marchionne, chief executive of Fiat Chrysler, said Tuesday at an industry event in Geneva, according to The Wall-Street Journal. "If it turns out that there isn't enough liquidity with that stake we might have to increase it."
Marchionne, a chairman at Ferrari, said back in October that he would spin off Ferrari by selling 10 percent stake through an IPO and then distribute 80 percent of FCA's stake to its shareholders.
Piero Ferrari, vice chairman and son of the founder Enzo, who died in 1988, owns the other 10 percent, according to Reuters.
"Selling 10 percent is too little when there is excessive demand and even 20 percent would not resolve the low liquidity problem," Marchionne said at the auto show. "That's why we are evaluating if to sell more than 10 percent."
Higher stakes sold in the market would lower the number of shares in Ferrari that could go to current shareholders.
Marchionne reiterated that the automaker could introduce a loyalty share scheme as part of the IPO. This would five long-term investors multiple voting rights.
"We haven't made a final decision yet, it's all under discussion," Marchionne said.
Ferrari will be listed in New York and there's a good chance it will have a secondary listing in Europe. Fiat Chrysler already has a primary listing on the New York Stock Exchange and secondary listing in Milan, according to NASDAQ.
Before the IPO, Fiat Chrysler could create a Netherlands-based holding company to own the Ferrari stake, Marchionne said at Geneva.
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