NEW YORK -- Ferrari NV priced its initial public offering at the top of expectations on Tuesday, raising $893 million, as drivers enamored with the luxury sports car maker snapped up its shares alongside institutional investors, defying a choppy market.
Ferrari pulled out all the stops to market itself to some of its owners as well as Wall Street, and also limited the offering to a 9.1 percent stake in the company.
The strategy paid off, as the IPO was priced in New York on Tuesday at $52 per share, at the top end of its indicated $48 to $52 per share range, according to people familiar with the matter. The IPO gives Ferrari, controlled by Fiat Chrysler Automobiles NV, a market capitalization of around $9.8 billion.
The shares, as of midday, were trading up 8.3 percent at $56.32.
Including debt Ferrari will take on from Fiat Chrysler, the supercar producer will have an enterprise value of about $12 billion.
The sources asked not to be identified because the pricing details of the IPO were not yet public. Ferrari did not immediately respond to a request for comment.
Ferrari Chairman Sergio Marchionne, who is also Fiat Chrysler’s CEO, rang the opening bell at the New York Stock Exchange today with other executives, including Vice Chairman Piero Ferrari, the son of founder Enzo Ferrari, and Fiat Chrysler Chairman John Elkann, whose family will become Ferrari’s biggest shareholder after the spinoff from its Italian-U.S. parent company next year.
Shares in Englewood Cliffs, N.J.,-based Ferrari are trading under the symbol RACE.
Fiat Chrysler will raise more than $4 billion from taking Ferrari public, including an extra 1.7 million shares in an overallotment to underwriters, plus 2.8 billion euros ($3.2 billion) in additional cash that the division will provide before next year’s spinoff.
Investors’ demand for Ferrari shares greatly exceeded the number available, people familiar with the matter said last week.
Fiat Chrysler is limiting the stock on sale to ensure that it’s sought after, in the way that Ferrari boosts its products’ allure by capping the number of cars it makes.
Fiat Chrysler plans to distribute its remaining 80 percent stake in Ferrari to its own investors early next year. Piero Ferrari will retain his 10 percent holding.
Cash from the IPO is critical to enable Fiat Chrysler to finance a 48 billion-euro investment program focused on expanding the Jeep, Alfa Romeo and Maserati nameplates. Marchionne aims to boost Fiat Chrysler's annual deliveries worldwide by more than 50 percent to 7 million vehicles by 2018.
Fiat Chrysler shares traded in New York have risen more than 60 percent since Oct. 28, 2014, the day before Marchionne announced the plans for Ferrari.
That is the best performance among major auto-industry stocks -- compared with a gain of about 7 percent for General Motors and a plunge of almost 30 percent for Volkswagen AG, the German company that has been grappling with a diesel-emissions test-cheating scandal in the past month. In Italy, Fiat Chrysler has surged more than 80 percent in that period.
Ferrari's listing comes a week after several big IPOs were discounted or delayed. Payment processor First Data Corp. priced this year's biggest public offering below its indicated range, while supermarket operator Albertsons Companies Inc. had to postpone its IPO the night before its shares were expected to start trading. Luxury fashion retailer Neiman Marcus Group Inc. has also delayed its IPO to 2016.
Unlike Neiman Marcus, First Data and Albertsons, however, Ferrari is not a big leveraged company looking to pay down debt.
Reuters and Bloomberg contributed to this report.