Via: Source
Even if you can’t quite afford one of the legendary Italian supercars, you may soon still be able to own a piece of Ferrari itself. No, there’s not some new supercar-crowdfunding/crowdsharing app (dibs that idea) set to debut, but in fact, the legendary automaker is set to become a publicly traded company for the first time in their illustrious history. Let’s take a look at some of the facts on Ferrari ahead of the IPO.
The question investors ponder with Ferrari is simply, is this a good investment? Or is this simply an investment everyone is going to WANT to make. Or does that fact that everyone is going to likely want in on the Ferrari action make it a good play in itself? Indeed, there is a lot to consider.
Ferrari is a relatively unique automaker. They produce at an incredibly low volume compared to many other automakers (shipping just under 8,000 cars last year, as compared to over 36,000 shipped by Maserati), which makes their main customer base of serious collectors, enthusiasts, and actual performance and race car drivers incredibly loyal. But of course, low output can also put a limit on profits, although the company has always performed more than solidly in the past.
This IPO deal is interesting for another reason as well. It is mainly being done to decouple Ferrari from FCA, which currently owns 90% of the company, the other 10% being owned by Piero Ferrari, son of the company’s founder. After the deal, roughly 80% of equity will be in the hands of shareholders. What do you think? Is Ferrari a good long-term stock pick? Or would you be better off simply saving up for one of the gorgeous vehicles?