Driving to the stock exchange: how the son of the Ferrari founder became a billionaire

On Wednesday, the NYSE began trading shares of Ferrari. With the start of trading, the company's capitalization reached $11 billion. IPO turned the son of the founder of the brand, Piero Ferrari, into a billionaire. He owns a tenth part of the company. 
27.10.2015
RBC
Origin source
On Wednesday, the New York Stock Exchange (NYSE) launched trading in shares of the Italian automaker Ferrari. Prior to that, the company held an IPO, during which investors valued the company at $ 9.8 billion. During the placement, they were asked to 9%, the deal was worth $ 893. If placing banks-organizers exercise their options, the placement volume will reach $ 982 million. After the start of trading on the NYSE Ferrari shares rose by 17%, the company's capitalization has reached $ 11 billion. According to The Financial Times, in the near future it will be $ 12 billion.

Prior to the release to the stock exchange the sole minority shareholder was the son of Ferrari founder Enzo Ferrari - Piero Ferrari, who owned 10% of shares (15.3% of the vote). In mid-October, Forbes and Bloomberg predicted that after the IPO Ferrari Piero Ferrari condition is $ 1,27-1,3 billion According to Forbes estimates, more than $ 900 million of this assessment is necessary just to share a businessman in the Ferrari, the remaining amount -. Income received earlier from the deals with the concern Fiat Chrysler Automobiles (in May 2013 during the reorganization of the Group FCA Piero received his € 280 million).

Seller Ferrari shares in the IPO was FCA, which remains the principal owner of Ferrari. Before going public Ferrari FCA controlling 90% stake in the automaker. Money FCA investors plans to spend on its own development: investment group program is € 48 billion, including about $ 3.2 billion, the company must obtain from Ferrari (until April 2016 the company will issue bonds).

Ostavishesya 80% stake in Ferrari FCA is going to distribute among its own shareholders. As a result, about 24% of the shares (or 36% of the votes) will get the main owners of Fiat - the Agnelli family. Other shareholders FCA will be shared by the remaining 66% shares of the Ferrari, which account for 49% of the vote.

heir to the Empire

Piero - the only living descendant of Enzo Ferrari. His mother, Lina Lardi, was a long-term mistress Enzo. Born married Enzo Laura Garello Alfredino son died in 1956 aged 24 year. In recent years, Piero Ferrari, was vice-chairman of Ferrari. His role in the management of the company was more symbolic: he embodied the continuity - the rest of the stake of 90% in control group first Fiat, and then - FCA.

brand Strength

TAv FCA Group Sergio Marchionne often recalls that the Ferrari - it's not just a car company, but also a manufacturer of luxury goods - on a par with luxury LVMH (Louis Vuitton brand owned and Moët & Chandon) and Richemont (Cartier, Piaget and Mont Blanc). Due to this, Ferrari capitalization of $ 9.8 billion is nearly half of the market value of the FCA (the capitalization of the Group as of October 21 - $ 20.48 billion).

Last year, Ferrari sold only 7255 cars (FCA - 4,6 mn), its revenue for the same period amounted to € 2.8 billion (FCA - € 96,1 billion). In 2015 BrandFinance edition, which has been compiling a ranking of the most expensive brands, assessed the Ferrari brand in the $ 4 billion. In the ranking of the most influential brands in 2015 Ferrari was in tenth place. Even in 2014 the Italian brand headed this list, but the lack of victories in the "Formula 1" shaken its position.

In recent years, Ferrari is actively seeking to make its brand. In 2010, Abu Dhabi Ferrari World entertainment complex opened recognized five years later, one of the most attractive tourist sites in the Middle East. The company is actively engaged in nOdagiu own paraphernalia: caps, scarves, T-shirts, etc. In the structure of Ferrari sales in 2014 license agreements accounted 17.6%.

Risk factors

The main danger that lies in wait for the new Ferrari shareholders - is the loss of support from the parent company, and increased competition from new players. The main competitors of the Italian brand in the market of expensive sports cars is Porsche and Lamborghini (both belong to Volkswagen). The most vivid among the "newcomers" who can oust these brands - maker Tesla electric car. In addition, the development of your own car long suspected Apple. Research in this area also leads Google. Ferrari is also experimenting with new technologies in their latest model LaFerrari, released a limited edition of 499 copies. But while the company does not have a version available with electric or hybrid engine.


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