If you like cars and investing in the stock market, today is going to be a great day.
In a much-anticipated initial public offering, Ferrari shares began trading Wednesday on the New York Stock Exchange. The luxury sports car maker picked an appropriately cool ticker symbol, "RACE."
Ferrari's stock closed Wednesday up nearly 6 percent at $55. The automaker priced its IPO on Tuesday at $52 per share, which was on the high side of analyst estimates. The shares opened at $60 and peaked as high as $60.97 in the first hour or two of trading. The IPO raised $893 million (roughly £578M or AU$1.24B), which gives Ferrari a market capitalization just below $10 billion (£6.5B, AU$14B).
Ferrari's parent company, Fiat Chrysler Automobiles, stands to make a pretty penny. FCA limited the initial offering to a 9.1 percent stake in the luxury automaker, which is roughly one tenth of FCA's total stake in the car company. All proceeds from the IPO will go to FCA, according to a regulatory filing.
Counting the money raised in the IPO and a roughly $3.2 billion (£2.1B, AU$4.4B) transfer as part of Ferrari's spin-off, FCA could rake in some $4.2 billion (£2.7B, AU$5.8B).
This money couldn't come at a better time for FCA, which is working to raise money for new efforts. Between several pending new Jeep models, the return of Alfa Romeo in the US and the lack of response from automakers to FCA's merger offer, it wouldn't be surprising if half of the money raised is already earmarked for something specific.
Update, 4:30 p.m. PT: Adds closing price of Ferrari shares.