Fiat-Chrysler intends to list shares in the newly created car manufacturer in New York on Oct. 13, according to a statement by chief executive Sergio Marchionne on Saturday. He said a decision on any capital hike will be reached at the end of that month.
The CEO was speaking one day after the merger between Fiat and its US venture Chrysler overcome its last remaining obstacle.
Fiat acquired Chrysler at the start of 2014 and the two units operate as one entity. The CEO intends to incorporate the two into one company called Fiat Chrysler Automobiles (FCA) and registered in Dutch, clearing the way for the US listing, which he says is necessary to help fund a 48-billion euro five-year growth agenda.
“The most likely date for the listing in the U.S. is October 13. But all decision on any capital increase will be taken by the board of FCA at the end of October,â€Â Reuters quotes Marchionne as telling reporters.
He said that the five-year business strategy for the world’s seventh-biggest carmaker suggested in May does not anticipate a cash call.
Marchionne hopes that the merger and the US IPO will help the company finance the re-launch of its Alfa-Romeo and Maserati brands, ship Jeeps on a global scale, and take the three brands to the rapidly growing Asian markets, where the entity is not doing do well.
Analysts say that the objectives to grow net profit by 500% and sales by 60% within five years seem ambitious, and they argue that the company will have to raise capital to accomplish them.
The listing comes after Fiat has found that the number of its shareholders whose stake will need to be bought out won’t surpass the 500-million Euro limit the company has set, paving way for the IPO, USA Today Money reported.
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To contact the reporter of this story; Yashu Gola at yashu@forexminute.com
