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.
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.
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.