Ferrari is ready for IPO
Ferrari is planning to list 10% of its shares on New York Stock Exchange (NYSE). The Fiat Chrysler (NYSE:FCAU), owner of 90% of Ferrari, has not yet decided about the number of shares and its price. The entire purpose of the deal is a full separation of the Ferrari from Fiat. As it is announced, Ferrari is not going to earn anything from the IPO, as all the shares are being sold by Fiat.
Investors are expecting to see Ferrari on the stock market in the beginning of 2016, and UBS (NYSE:UBS) will play a role of global coordinator along with Bank of America (NYSE:BAC) and Santander (MADRID:SAN) Investment Securities.
As it’s assumed, the success of IPO will strongly depend on the Formula1 Ferrari team. If the team fails, the stocks will go down. Another risk point is Ferrari sales strategy itself. Company produces a small amount of cars and that might limit the profits, as key competitors Maserati and Porsche (OTC:POAHY) are producing times more cars. One more factor will influence the success of Ferrari’s IPO – its strategy on emerging markets. If the company manages to enter those markets, the stocks will definitely go up.
Barclays' profits are up by 25%
The Barclays (LONDON:BARC) Bank announced its statutory pre-tax profits for the previous six month have grown by 25% to £3.1bn. This is significantly higher results than last year, when the profits for the similar period were £2.55bn. Barclay’s share price was up by 2% and reached 285.10p in early trade on the London Stock Exchange.
Now the bank is planning optimization designed to reduce the costs. In order to do this, Barclays is about to cut its core assets from £57 billion to £20 billion by the end of 2017 and sell the business in Portugal.
McFarlane, executive chairman of Barclays, said in a statement; "We need to accelerate the execution of the strategy. There is more that can be done to deliver better returns for shareholders, faster."