Ferrari’s Going Public

Ferrari sports cars, in this case the 458 Italia model, are constructed to specific order by clients. The company stresses that it is not an "assembly line."

It’s not everyday you get wind of a luxury brand planning to hit the stock market. Anyone who’s seen the Wolf of Wall Street will know the polar extremes of luxury flotation with the featured Steve Madden IPO featured in the film.

Chairman of Ferrari, Sergio Marchionne, and former Chairman of Ferrari, Luca di Montezemolo.
Chairman of Ferrari, Sergio Marchionne, and former Chairman of Ferrari, Luca di Montezemolo.

With a $11bn estimated valuation, this isn’t a small time floatation. For many decades, Ferrari has been a family owned business, managed by the legendary Enzo Ferrari. It’s therefore led to some speculation over recent years about a possible IPO. Around 10% of the company’s value will be made available to investors, leaving the rest with Fiat Chrysler.

Ferrari's flagship Maranello factory.
Ferrari’s flagship Maranello factory.

Production is expected to continue in Ferrari’s Maranello plant but this move would see the brand become truly international. There is obviously fear that this shift could affect the brand in the long run with a possible move away from F1 and more towards increasing revenue. It’s the additional involvement that makes a luxury brand now. Motorsport is a huge revenue stream for Ferrari, generating income from fans, merchandise and sponsors.

Inside the Maranello factory. Photo: Hypebeast
Inside the Maranello factory. Photo: Hypebeast

Leave a Reply

Your email address will not be published. Required fields are marked *