With an apropos stock symbol of RACE, Ferrari NV stock roared like one of its famous nameplates this week as its initial public offering raised $893 million for FCA.
The luxury line hit Wall Street on Wednesday opening at $52 per share and traded as high as $60.97 before closing up 5.8 per cent at $55.
The Wall Street Journal reports that roughly nine per cent of the Italian company is being traded, which analysts say will help maintain a premium share price.
An additional one per cent of the company could hit the New York Stock Exchange in the weeks to come if the investment banks that helped guide the IPO choose to sell its shares, the paper adds.
FCA retains 80 per cent of the brand with the remaining 10 per cent owned by company heir Piero Ferrari.
FCA chief Sergio Marchionne has said the strategy is to sell off the remaining stake to FCA shareholders early next year. The plan is the latest step in raising capital for the company’s massive $61-billion five-year growth plan.
During its prospectus, the luxury line said it could increase production from roughly 7,000 units annually to 10,000 without hurting its premium cache.