Ferrari shares opened at $60, up 15.4 percent from its IPO price, but then pulled back after the initial exuberance.
The company’s stock priced its initial public offering at $52 a share after the market close on Tuesday, with sources saying the demand for shares was “well oversubscribed.” The price was at the top of the previously indicated range of $48 to $52 per share.
At its opening trade of $60, Ferrari’s market value came in at $11.3 billion. Within the first 30 minutes of trading, the price was more than 9.5 percent above the IPO price. Click here to see how Ferrari shares are trading.
Sergio Marchionne, CEO of Fiat Chrysler Automobiles and chairman of Ferrari, told CNBC after the first trade that he expects the company’s cars to remain relatively rare.
“What is at the heart of the brand is this intimate relationship between us and the customer base,” he said. “Therefore it would be almost suicidal to try to expand volumes to the detriment of that relationship.”
As part of the planned IPO, the automaker is floating about 17.18 million shares to the public, representing about 9 percent of the company. Ferrari raised nearly $900 million in public capital in the process.
Ferrari is trading on the NYSE under the symbol “RACE.”