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Ferrari mulls Hong Kong IPO

Ferrari mulls Hong Kong IPO

Write: Peace [2011-09-07]

Ferrari mulls Hong Kong IPO

Ferrari, Italian sports auto makers, displays its auto at an auto show. [CFP]

Italian luxury auto maker Ferrari is in talks with investment banks about a planned IPO on the Hong Kong stock exchange, according to a report by Reuters.

The listing is expected to value the legendary auto maker at US$6.3 billion, beating previous estimates of US$5.3 billion, according to the report.

Several investment banks have approached Ferrari's owner Fiat in recent weeks with a proposal for the listing, according to sources close to the issue.

The market has been rife with rumors about the IPO, but a spokesman for Fiat declined to comment when asked if talks had been held with banks about a possible Ferrari offering.

The listing would help Fiat raise capital to pay down its debt of around US$7.2 billion.

Fiat has already paid US$500 million for the US government's remaining 6 percent stake in Chrysler, raising its stake to 52 percent, making it the majority shareholder in the US auto giant.

China has become a booming market for global luxury brands. Ferrari sold about 300 units in China last year, up 50 percent compared with 2009.

China's business press carried the story above on Tuesday.