Ferrari opened its first shares Wednesday at $60 each as part of its initial public offering (IPO) on the New York Stock Exchange on Wall Street, according to CNBC News.
The Italian automaker pulled back it's initial price of $60 a share to $52 a share after the market closed on Tuesday.
The luxury car maker floated 17.18 million shares to the public, which is nearly nine percent of the company, raising about $900 million in public capital in its debut on the New York Stock Exchange (NYSE), CNBC News noted.
Ferrari initially priced it's stock at $52 per share, Yahoo! Finance reported. Chief market analyst Michael Hewson at CMC Markets stated there has been plenty of interest in the nine percent stake offered.
"By way of a bit of background, 46 years ago in 1969 Fiat-Chrysler bought a 50 percent stake in Ferrari which it then increased to 90 percent in 1988," said Hewson.
"The company hopes to sell 9 percent of that stake, which amounts to around 17.2 million shares on the open market at $52 a share, at the top end of the price range, which would value the company in the region of $10 billion and raise about $895 million," Hewson told Yahoo! Finance.
Sergio Marchionne, chairman of Ferrari and CEO of Fiat Chrysler Automobiles, said that he would not let increased production undermine the Ferrari tradition.
"What is at the heart of the brand is this intimate relationship between us and the customer base. We have 60 per cent of the people that buy our cars every year are returning customers," Marchionne stated. "And therefore it would be almost suicidal to try and expand volumes to the detriment of that relationship."
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