Several investment banks have approached Fiat SpA in recent weeks with a proposal to list legendary sports car maker Ferrari on the Hong Kong stock exchange, sources with direct knowledge of the matter told Reuters. A potential initial public offering could value Ferrari as high as $6.3 billion, according to some analysts.
The deal would help Fiat raise funds to pay down its debt of around 5 billion euros ($7.2 billion) and could also boost the valuation of the Italian company's shares. "Fiat hasn't made up its mind yet about the IPO, but it's certainly talking with banks about it," said one source, who declined to be named because the discussions are private. Some meetings had been held and several others had been lined up in coming weeks to drum up support for the potential offering, four sources said.
A Fiat spokesman declined to comment when asked if meetings had been held with banks about a possible Ferrari offering. The spokesman referred to comments by Fiat Chief Executive Sergio Marchionne, repeated several times in the past few months including last week, that a Ferrari IPO "is not on the table" for the time being.
Last year, Fiat - which owns US-based Chrysler - said it was considering an IPO for Ferrari as a strategic option and speculation has grown ever since. Still, Ferrari Chairman Luca Cordero de Montezemolo and Fiat's Marchionne have recently sought to play down a potential deal. "It's more real than you'd think," said another banker who had met with Fiat.