Bluefield Partners the Shenzhen, China-based investment house says that investors need not be concerned that Ferrari’s desire to maintain the exclusivity of its brand could be at odds with its future profitability. Some commentators have voiced concern over the Maranello, Italy-based luxury sports car maker’s barely-concealed strategic differences with its current owner, Fiat Chrysler Automotive (FCA) over the brand’s future as a business.
There are suggestions that the disagreement acted as a catalyst to the decision to spin Ferrari off as a separate company but Naveen Chawla, Chief Investment Officer at Bluefield Partners said, “Whatever the reasons, prospective shareholders need not be concerned that the preservation of the marque’s exclusivity will impact upon future profitability.”
“Unlike luxury brands outside the automotive sector like Prada, Rolex and others who pursue sales volume, it simply wouldn’t do to have everyone driving a Ferrari. The cachet of the brand is what will drive profitability going forward,” he added.
FCA’s CEO, the ebullient Sergio Marchionne has promised that Ferrari’s IPO will be completed by the end of June 2015. The sale of a 10% stake in Ferrari will net the company as much as $500 million but investor interest in the IPO has recently led to speculation that a 20% or even 30% stake may be offered to investors to meet demand.
Bluefield Partners says it will formally announce the size of the tranche of stock it will secure for clients once the IPO’s primary underwriters are revealed.
“We expect this IPO to do fantastically well. It’s not every day that a marque as steeped in tradition as Ferrari comes to the market,” concluded Chawla.
About Bluefield Partners:
Bluefield Partners was established in 2005. We are headquartered in Shenzhen, China with presence in Beijing, Shanghai and Hong Kong.
Bluefield Partners functions as a privately held Investment Counseling and Advisory firm. We render investment and advisory services for individuals, trusts and charities who want their wealth managed professionally. Portfolios are tailored for each client on an individual basis. We are committed to enhancing your wealth and protecting your future.