Reginal Thomas
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Ferrari Shares Surge 15 percent On Wall Street IPO

Shares for Ferrari jumped 15% to $60 on its Wall Street IPO after the Italian supercar maker prices its stock at the top range after heavy investor demand.

Parent company, Fiat Chrysler Automobiles, was able to squeeze more value out of the IPO by keep the shares scarce and only limiting the offer to a 10% stake.

FCA could raise as much as $982 million if a “greenshow” option is exercised, giving the sports car sector a stock market value of $9.8 billion.

Sascha Gommel, an analyst for Commerzbank, said "We still believe that the current share price overstates the fair value of the company." He also added, "We expect a significant de-rating the moment the Ferrari spin-off happens."