Ferretti Group Withdraws IPO
Following the recent news of Ferretti Group’s intention to float, the Italian yacht-building conglomerate has announced that it has waived its move to list on the Italian stock exchange.
Ferretti Group had initially planned to offer up 30% of the company’s shares on the market at a price of 2.50 – 3.70 euros per share, with an aim of listing on the market at a valuation of 1.08 billion euros. The first day of trading was expected to take place at the end of October 2019, after it was revealed at Cannes Yachting Festival that Ferretti Group had received a cash injection of 250 million euros.
This was followed by an extension of the offering period, which lasted first from 1 October to the 10th, until October 15th. The Group subsequently lowered the share price, to 2 euros per share, which would have resulted in a valuation of 580 million euros – a significant decrease from the initial proposition.
Majority shareholder Weichai Group, who lays claim to a generous 75% stake in the company, has now deemed the listing price too low and made the decision to withdraw the IPO.
In a statement, the group commented that, “Despite the quality and number of received subscriptions, the deterioration of the conditions of the financial markets does not allow the company to be properly valued.”
Indeed this is not the first time Ferretti Group’s IPO ambitions have been scuppered by market conditions. The Italian group’s first plans to list on the stock exchange date back to 2008, but these were eventually suspended for reasons relating to the financial crisis.
Regardless things remain hopeful for the group in 2020, as CEO Alberto Galassi commented in a recent interview with Reuters that, “You’ll see in 2020 a new investor will come on board”. Galassi revealed to Reuters that a private European investor could take a 30% stake in the company following the withdrawal.
The IPO announcement came after a strong period of sustained growth for Ferretti Group, who recently made headlines after a show-stopping performance at Cannes Yachting Festival, where they took home 6 awards and established their firm foothold of success in the industry. Ferretti Group includes 8 marine brands, including the superyacht brands CRN, Riva, Pershing, Ferretti Yachts, Custom Line and most recently Wally.
"Despite the quality and number of received subscriptions, the deterioration of the conditions of the financial markets does not allow the company to be properly valued."