Bluefield Partners says that a decision on which banks will handle Ferrari’s IPO will have to be made soon if the sports car maker’s NYSE debut is to complete by June.
Bluefield Partners says it is disappointed that Fiat Chrysler Automotive (FCA) is “unlikely” to sell more than a 10% stake in luxury sports car maker, Ferrari.
Sergio Marchionne, the car giant’s Chief Executive Officer hinted last month that there was a possibility that as much as a 20% or 30% could be sold off if demand meant that liquidity in the stock would be low but, at an industry event in Amsterdam last week, he said “I don’t believe we will go above 10%”.
If FCA were to offer a larger stake in the IPO, that would have meant a reduction in the number of shares that would be offered to FCA shareholders including the Agnelli family who founded Fiat and who are rumored to be particularly keen to hold on to the jewel in the crown.
“This is disappointing news,” said Naveen Chawla, Chief Investment Officer at Bluefield Partners. “We’re a relatively small player but clients have been beating down our door with interest in owning a piece of the illuminati of automotive history. One can only imagine the sentiment among clients of the likely underwriters of the IPO.”
Bluefield Partners says that a sliver of hope that more than 10% will be sold remains, however, as Mr. Marchionne said that no final decision had been made.
“We will continue to press the likely lead underwriters to confirm an allocation of stock but, obviously, until such time as a formal announcement is made as to who will actually handle the IPO, it’s impossible to promise clients stock,” concluded Chawla.
About Bluefield Partners:
Bluefield Partners was established in 2005. We are headquartered in Shenzhen, China with presence in Beijing, Shanghai and Hong Kong.
Bluefield Partners functions as a privately held Investment Counseling and Advisory firm. We render investment and advisory services for individuals, trusts and charities who want their wealth managed professionally. Portfolios are tailored for each client on an individual basis. We are committed to enhancing your wealth and protecting your future.
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