The luxury Italian car manufacturer Ferrari has made its debut on the New York Stock Exchange at $60 (£39, €53) per share – 15% higher than predicted.
Ahead of the market's opening in the US the shares were not expected to come cheap. Shares were initially expected to fall within a range between $48-52 per share. On the back of the offering the carmaker's valuation has soared in excess of $11.3bn, the Financial Times reported.
Only 10% of the Italian company went on offer to the public and the caveat of the luxury brand meant supply was always going to outpace demand, according to Reuters.
Sergio Marchionne, chief executive of Fiat Chrysler Automobiles (FCA), Ferrari's parent company, chief executive Amedeo Felisa and Piero Ferrari, son of founder Enzo Ferrari, rang the opening bell at the New York Stock Exchange to kick-off trading. Wall Street was decked out with the Ferrari Logo and flew the auto manufacturer's yellow flag alongside the Italian tricolour outside its premises.
Investors have pounced on the opportunity regardless of some worrying trends. Because of its super-luxury image, Ferrari growth may be constrained by the number of cars it can make each year while retaining its exclusivity. The financial slowdown in China has also already hit the sale of supercars by Ferrari sister company Maserati.
Ferrari filed for an initial public offering (IPO) in the US at an enterprise valuation of about $9.8bn in early October. The deal is expected to help the company raise about $893m from the NYSE.
This IPO and an eventual spin-off of Ferrari are part Marchionne's broader plan aimed at raising funds to cut the parent company's debt and finance a €48bn investment plan to focus on its other brands such as Jeep, Alfa Romeo and Maserati.