Fiat Chrysler launches Ferrari IPO, shares to be traded under RACE

Italian-American multi-national auto-maker, Fiat Chrysler Automobiles has launched the long-anticipated initial public offer (IPO) of a stake in its luxury sports carmaker Ferrari.

The IPO price on the New York Stock Exchange is likely to be between $48 and $52 per share. Shares will be traded under the symbol RACE, according to a statement by Fiat Chrysler on Monday.

After the public listing, Fiat Chrysler, which owns 90% of Ferrari, will retain about an 80% share. The world’s seventh largest auto-maker says it intends to distribute its shares to its own shareholders early next year.

Fiat said the offering is part of a "series of transactions to separate Ferrari from Fiat Chrysler Automobiles".

The spin-off is aimed at distinguishing the luxury brand from its mass-market parent, while raising money to support Fiat Chrysler's growth plans.

(Image: Reuters)