Newly created Fiat Chrysler Automobiles (FCA) has started meeting U.S. investors following its $2.5 billion bond issue and share sale launch aimed to reduce its financial obligations and gain funds for an ambitious investment plan.
In October, FCA moved its primary share listing and said it intends to invest in Alfa Romeo, Jeep and Maserati into global brands with an estimated budget of 48 billion euros or $59 billion. FCA also hopes to take on BMW and Volkswagen by establishing its position in the high-margin and fast-growing premium cars market.
The share and bond offers were announced by the company’s chief executive Sergio Marchionne last Thursday which kicked off a roadshow in New York investors that would run for four days.
Also part of the ambitious investment plan, FCA Chief Executive Marchionne is spinning off and listing Ferrari too that will give its shares to Fiat investors and shareholds who will take on the bond offer.
By 2015, 10% of the luxury sprotscar Ferrari shares will be sold in a public offering in the U.S.
Since the launch of the plan in October 29, the shares of FCA has surged up by over 40% which is its highest in over 13 years under the estimates that the bond and share issues would fully recover because of the Ferrari shares that would be sold in a public offering.