Ferretti SpA, the Italian superyacht maker partially owned by the Ferrari family, scrapped its planned Milan listing on Thursday, citing weak market conditions, adding to a growing pile of recently-pulled initial public offerings in Europe.
Italy’s Ferretti planned to bring on board private investor from an un-named place in Europe after they abandoned a planned stock market flotation. They decided to call off the public shares offering on the stock exchange in Milan, they say because “they could not get the right pricing”. This was stated by ferretti after a source had previously revealed this to Reuters, confirming their breakthrough news article.
“You’ll see, in 2020 a new investor will come on board,” Ferretti CEO Alberto Galassi told Reuters over the telephone. He added that the un-named European private investor could look to take a shareholders stake of approximately one third (or 30%) and that talks had been on-going with the private investor for some time, behind closed doors.
The Italian audio equipment maker RCF said that it too had put its plans to list on the Milan stock exchange on hold. They claimed this was to do with adverse conditions on primary markets at home and abroad. Was this just a coincidence?
It was a challenging year for European IPOs (Initial Public Offerings), with investor sentiment knocked down by expectations of an economic slowdown as Brexit and the America-China “trade war” took their toll. Alberto Galassi said that whilst the IPO book had been covered, in other words there were sufficient investors to buy all the shares that they had on offer, the investors were not willing to pay the price that Alberto Galassi felt reflected Ferretti’s value. U.S. investors were very few, he said, with the ongoing trade tariff dispute between Washington D.C. in the U.S.A. and Beijing in China not helping the listing of a company whose main shareholder is Chinese.