Trade the Ferrari IPO via binary options with uBinary
uBinary have acted swiftly to offer traders the opportunity to trade the Ferrari IPO.
The luxury carmaker has raised more than $890m according to the Financial Times. 17.2m shares were sold at $52 each. It is understood that underwriters also have an option to purchase a further $1.7m shares if demand justifies it.
The flotation is the fourth largest in the US during 2015 – public trading will begin on the New York Stock Exchange (under the stock ticker of RACE) on Wednesday.
Fiat Chrysler currently own the luxury brand, with the Ferrari family retaining 10%. Early indications suggest demand for the shares has been very robust. News of the flotation has seen the share price of Fiat spike sharply upwards, back towards yearly highs – those highs representing a 60% increase since late 2014. The firm are expected to plough the proceeds of the IPO into a large investment programme.
Ferrari operate by protecting exclusivity and actively controlling supply. The share issue appears to be being operated in a similar way, offering just enough shares to ensure there is a real scramble for them.
Binary options traders can take a position on the Ferrari float with uBinary. Quick off the blocks to get the asset listed, the firm are offering a 78% payout ready for the flurry of activity expected from what is a very glamorous IPO.
As ever, there is a real split of opinion over which why the value will move once public. Some assume the allure of Ferrari, and the potential to protect supply, will bolster the share price and see a sharp immediate increase. Others looking at the cold hard fundamentals struggle to see any logic in the current valuation and see the IPO starting off like a lead balloon. With a brand that attracts such a passionate following and a level of exclusivity that is difficult to value (owning shares is not quite like owning the car), there is no real consensus for the likely levels of demand. Binary options traders with a strong opinion can secure a return of 78% if they are right.