Ferrari and FIAT have been linked since the late 1960s, when Gianni Agnelli bought 50% of Ferrari from Enzo Ferrari. This rose to 90% in 1988, when Enzo Ferrari died. But in mid-2014, Sergio Marchionne, head of FCA (the group created by the merger of Fiat and Chrysler), announced that Ferrari would be spun off in early 2016. Before this separation, 10% of Ferrari's capital will be floated on the stock market.
The IPO is part of a series of financial operations aimed at separating Ferrari from FCA, the latest being a spin-off, with Ferrari shares being distributed to FCA group shareholders. Ferrari has always been considered the "jewel in the crown" of the group, so why separate it? Why was this split organised via an IPO and then a spin-off? The background to these operations is examined, as well as the valuation of Ferrari at the time of the IPO and the consequences of the spin-off.