Fiat Chrysler Automobiles launches Ferrari IPO

Fiat Chrysler Automobiles (FCA) has just issued an IPO for Ferrari. FCA currently holds 90% of Ferrari’s issued and outstanding share capital, and plans to sell 17,175,000 common shares of Ferrari, which equates to around 9% of the company's stake in the Italian sports car brand.

This is a part of what will be a series of transactions to separate Ferrari from FCA. Apart from distancing the exotic brand from its mass market parent, the sale will help generate some much needed funds for FCA's growth ambitions.

The shares will trade on the New York Stock Exchange (NYSE) floor under the symbol, "RACE" with prices expected to fluctuate between $48 and $52. Following the completion of this offer, FCA is expected to distribute its remaining 80% holding in Ferrari to its shareholders at the beginning of 2016.