MILAN/NEW YORK (Bloomberg) -- Ferrari raised $893 million in its U.S. initial public offering, pricing the shares at the top end of the marketed range after investor demand in the supercar maker outstripped the stock available.
Majority shareholder Fiat Chrysler Automobiles, which is selling a 9 percent stake in the iconic Italian brand, priced 17.18 million shares at $52 each, according to a statement Tuesday, after offering them for $48 to $52 apiece.
Including debt Ferrari will take on from Fiat, the company will have an enterprise value of about $12 billion. The shares will start trading Wednesday, listed on the New York Stock Exchange under the symbol RACE.
Chairman Sergio Marchionne, who is also Fiat Chrysler's CEO, will ring the opening bell at the NYSE with other executives, including Vice Chairman Piero Ferrari, the son of founder Enzo Ferrari, and Fiat Chrysler Chairman John Elkann, whose family will become Ferrari's biggest shareholder after the spinoff from its parent company next year.
Fiat Chrysler will raise more than $4 billion from taking Ferrari public, including an extra 1.7 million shares in an overallotment to underwriters, plus 2.8 billion euros ($3.2 billion) in additional cash that the division will provide before next year's spinoff.
Investors' demand for Ferrari shares greatly exceeded the number available, people familiar with the matter said last week. Fiat Chrysler is limiting the stock on sale to ensure that it's sought after, in the way that Ferrari boosts its products' allure by capping the number of cars it makes.
Fiat Chrysler plans to distribute its remaining 80 percent stake in Ferrari to its own investors early next year. Piero Ferrari will retain his 10 percent holding.
UBS Group and Bank of America's Merrill Lynch managed Ferrari's IPO. Allen & Co., Banco Santander, BNP Paribas, JPMorgan Chase & Co. and Milan-based Mediobanca also worked on the offering.
Cash from the disposal is critical to enable Fiat to finance a 48 billion euro investment program focused on expanding the Jeep, Alfa Romeo and Maserati nameplates as Marchionne seeks to boost annual group deliveries by more than 50 percent to 7 million vehicles by 2018.