Ferrari NV priced its initial public offering at the top of expectations this past Tuesday, raising $893 million, as drivers who love the brand snapped up its shares alongside institutional based investors.
Ferrari, who is controlled by Fiat Chrysler Automobiles has pulled out all the stops to market the company to the right people and also limited the offering to a 9.1 percent stake in the company.
This made the offerings something special for investors.
The proof is the success of the IPO which was priced in New York on Tuesday at $52 per share. This placed it at the top end of its indicated $48 to $52 per share range that insiders noted.
The IPO now gives Ferrari a market capitalization of around $9.8 billion. Which positive for them.
Looking at the overall value in the campaign, the luxury car company approached a different investor mix, and clearly capitalized on the emotional resonance of its brand. Fans of Ferrari are dedicated and particular, similar to those that love Apple.
It also targeted more retail investors than a typical IPO. This allowed them to focus in on high net-worth individuals and those that are Ferrari owners. Some car owners said they got letters this summer inviting them to buy company shares once it listed. It looks like this smart marketing move helped focus and prepare possible investors they were targeting for the IPO’s release.