Ferrari shares opened at $60, up 15.4% from its IPO price, but then pulled back after the initial jump.
After the market closed on Tuesday, the company's stock priced its initial
public offering at $52 a share - at the top of the previously indicated range of $48-52 per share, with reliable sources saying the demand for shares was "oversubscribed."
At its opening trade of $60, Ferrari's
market value came in at $11.3 billion. The price was more than 9.5 percent above the IPO price within the first 30 minutes of trading.
Sergio Marchionne, CEO of Fiat Chrysler Automobiles and chairman of Ferrari, said 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."
The carmaker is releasing about 17.18
million shares to the public as part of the planned IPO, which represents about 9 percent of the
company. Ferrari raised nearly $900 million in public capital in the