Marchionne: Chrysler’s IPO offering could initially be small
CEO of Chrysler Group, Sergio Marchionne, has said that the company”s IPO might be relatively small and offered “˜in chinks, so that a base market for the company”s stock can be established. Marchionne told reporters that Chrysler”s financial performance next year will support an IPO sometime in the second half of next year.
Marchionne is currently one year into a five-year plan to rebuild Chrysler after its bankruptcy last year. He assumed the CEO position when Fiat, of which he is also CEO, took a 20% stake in the company as part of the reorganization. Fiat”s stake can be increased by Marchionne reaching certain milestones. Currently, the majority of Chrysler”s stock is held by a trust established to cover medical costs for UAW retirees.
“The primary objective of the IPO is to provide financial, long-term stability to Chrysler,” Marchionne said, so it may be more effective to sell stock in “chunks.”
Despite the fact that Chrysler is ahead of plan with its financial performance for the year, it says that when it does seek an IPO, it will be far less than $8 billion.
– By: Stephen Calogera
Source: Automotive News
