IPO Watch: Ferrari Revs Up Valuation

(RTTNews) - Ferrari, the luxury car division of Fiat Chrysler Automobiles (FCAU) is reportedly getting a much higher valuation than previously expected driven by its premium status of manufacturing high-performance luxury cars.

According to reports, Ferrari expects the IPO to bring its market valuation to about 11 billion euros ($12.4 billion).

Ferrari is now projected to be valued between 10 billion euros to 11 billion euros after Fiat Chrysler sells more than 10 percent stake in the division.

Ferrari is set to be listed on the New York Stock Exchange under the ticker FRRI.

According to reports, Ferrari's IPO could see the maker valued in a range of 12 to 14 times expected 2015 earnings before interest, taxes, depreciation and amortization.

Fiat Chrysler, which owns 90 percent of Ferrari, last year said it plans to sell 10 percent in the luxury car division's IPO. As for the remaining stake, feeble chances are that Fiat Chrysler may distribute it to its investors by year end.

The other 10 percent stake in Ferrari, held by Piero Ferrari -- the son of founder Enzo Ferrari, is expected to retained by him.