IPO Report: Ferrari N.V. (RACE)

Francis Gaskins  |

Ferrari N.V. (RACE) is among the world’s leading luxury brands focused on the design, engineering, production and sale of the world’s most recognizable luxury performance sports cars. The company is based in Maranello (MO) Italy.

Two other companies are scheduled for the week of Oct. 19. The full IPO calendar is available at IPO Premium.

SEC Documents

Manager, Joint-managers: UBS Investment Bank, BofA Merrill Lynch, Allen & Company, Banco Santander, BNP PARIBAS, J.P. Morgan, Mediobanca
Co-managers: None

End of lockup (180 days): Monday, April 18, 2016
End of 10-day quiet period: Saturday, October 31, 2015

RACE scheduled an $859 million IPO with a market capitalization of $9.4 billion at a price range midpoint of $50 for Wednesday, Oct. 21, 2015 on NYSE.


Ferrari is among the world’s leading luxury brands focused on the design, engineering, production and sale of the world’s most recognizable luxury performance sports cars.

RACE’s brand symbolizes luxury, exclusivity, innovation, state-of-the-art sporting performance and Italian design and engineering heritage.



Book Value (mm)





Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

Ferrari N.V. (filed as New Business Netherlands N.V. ) (RACE) NYSE










No proceeds to company

P/E of 33.5, high for a car company but this is a high-end iconic brand

Production from 7,000 cars in 2013 to 9,000 in 2019

Selling only 9% on the IPO

Price to book of -41

Introducing the brand to a multitude of consumer items

No proceeds to company

No public branded competition at the high end


Ferrari is among the world’s leading luxury brands focused on the design, engineering, production and sale of the world’s most recognizable luxury performance sports cars.

RACE’s brand symbolizes luxury, exclusivity, innovation, state-of-the-art sporting performance and Italian design and engineering heritage.

RACE’s name and history and the image enjoyed by its cars are closely associated with tis Formula 1 racing team, Scuderia Ferrari, the most successful team in Formula 1 history. From the inaugural year of Formula 1 in 1950 through the present, Scuderia Ferrari has won 224 Grand Prix races, 16 Constructor World titles and 15 Drivers’ World titles, including most recently the Constructor World title in 2008.

RACE believes its history of excellence, technological innovation and defining style transcends the automotive industry, and is the foundation of the Ferrari brand and image. RACE designs, engineers and produces its cars in Maranello, Italy, and sell them in over 60 markets worldwide through a network of 182 authorized dealers operating 204 points of sale.

RACE believes its cars are the epitome of performance, luxury and styling. RACE currently sells nine models, including seven sports cars (458 Italia, 488 GTB, 458 Spider, 488 Spider, F12berlinetta and its special series 458 Speciale and 458 Speciale A) and two GT cars (California T and FF).

Growth Strategy

In May 2013, RACE announced a decision to limit the number of cars sold, to approximately 7,000 per year in order to maintain a reputation of exclusivity among purchasers of cars.

RACE's strategic business plan reflects a continuation of the low volume strategy, while responding to growing demand in emerging markets and from demographic changes as the size and spending capacity of target clients grows, gradually increasing shipments to approximately 9,000 units per year by 2019.


RACE licenses the Ferrari brand to a select number of producers and retailers of luxury and lifestyle goods, and RACE sells Ferrari-branded merchandise through a network of 20 franchised and 12 owned Ferrari stores and on the website.

As one of the world’s most recognized premium luxury brands, RACE believes  it is well positioned to selectively expand the presence of the Ferrari brand in attractive and growing lifestyle categories consistent with the RACE image, including sportswear, watches, accessories, consumer electronics and theme parks which RACE believes enhances the brand experience of its loyal following of clients and Ferrari enthusiasts.

New Launchings

In March 2015, RACE launched the 488 GTB, which is replacing the 458 Italia and, in September 2015, RACE launched the 488 Spider, its latest sports car, which is replacing the 458 Spider. RACE expects to gradually replace its 458 models with successor 488 models during 2015 and the next several years. RACE also produces a limited edition supercar, LaFerrari, and very limited editions series (Fuoriserie) and one-off cars.

In 2014, RACE shipped 7,255 cars, and recorded net revenues of €2,762 million, net profit of €265 million, adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) of €693 million and earnings before interest and taxes (EBIT) of €389 million.

RACE pursues a low volume production strategy in order to maintain a reputation of exclusivity and scarcity among purchasers of its cars and deliberately monitor and maintain its production volumes and delivery wait-times to promote this reputation.

Regional Markets

RACE divides its regional markets into EMEA, Americas, Greater China and Rest of APAC, representing respectively 45 percent, 34 percent, nine percent and 12 percent of units shipped in 2014.

In recent years RACE has allocated a higher proportion of shipments to the Middle East and Greater China and, to a lesser extent, the Americas and a lower proportion to Europe, reflecting changes in relative demand as part of RACE’s strategy to manage waiting lists and maintain product exclusivity.

Intellectual Property

RACE owns a number of design and utility patents and registered designs. RACE expects the number to grow as RACE continues to pursue technological innovations and to develop its design and brand activities.

RACE files patent applications in Europe, and around the world (including in the United States) to protect technology and improvements considered important to its business. No single patent is material to RACE’s business as a whole.

RACE also owns a number of registered trademarks, designs and patents, including approximately 430 trademarks (word or figurative), registered in several countries and across a number classes.


In the sports car segment RACE’s products, are the 488 GTB, 488 Spider, 458 Italia, 458 Spider, 458 Speciale, 458 Speciale Aperta and F12berlinetta and RACE’s principal competitors are Lamborghini (Huracán and Aventador), McLaren (650S), Porsche (911 Turbo and Turbo S), Mercedes (SL 63/65 AMG), Aston Martin (Vanquish and V12 Vantage/ S) and Audi (R8 V10).

In the GT segment RACE’s products are the California T and FF models and its principal competitors are Rolls-Royce (Wraith), Bentley (Cont. GT/GTC, V12 and V8 (Speed and S version), GT3-R), Aston Martin (DB9) and Mercedes (CL 63/65 AMG, S Coupé 63/65 AMG).

Competition in the luxury performance car market is driven by the strength of the brand, and the appeal of the products in terms of performance, styling, novelty and innovation as well as on the manufacturers’ ability to renew its product offerings regularly in order to continue to stimulate customer demand.

Larger automotive groups with a product offering in the luxury performance car market typically have larger financial resources compared to the small luxury car producers and therefore may have more flexibility in planning for product launches and capital spending over time.

5% Shareholders Pre-IPO

Fiat Chrysler Automobiles N.V. 90.00% 

Piero Ferrari      10.00% 


Ferrari may make distributions to the shareholders and other persons entitled to the distributable profits only to the extent that its shareholders’ equity exceeds the sum of the paid-up and called up portion of the share capital and the reserves that must be maintained in accordance with Dutch law.

No distribution of profits may be made to Ferrari itself for shares that Ferrari holds in its own share capital.

Use of Proceeds

RACE will not receive any proceeds from its IPO.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
RACE Ferrari N.V. 110.02 -1.67 -1.50 251,224 Trade



Symbol Last Price Change % Change










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