IPO | Luxury yacht company Ferretti is now offering shares and is expected to go public on March 31

Futu News, March 22, this Tuesday$FERRETTI (09638.HK)$It was announced that it will issue 83.58 million shares from March 22 to 25. The company plans to issue 83.58 million shares, of which 8.358 million shares are publicly sold and 752.22 million shares are sold internationally. The issue price range per share is HK$21.82-28.24, with 100 shares per lot. It is expected to be listed on March 31.

Ferretti is a recognized leader in the global luxury yacht industry, with a set of iconic brands with a long history and exceptional high-end manufacturing capabilities. As one of the oldest Italian luxury yacht manufacturers, since establishing business in 1968, the company has been acquiring and integrating other leading yacht brands and production facilities, playing an important role in leading the development of the global luxury yacht industry.

The company's seven brands — Riva, Wally, Ferretti Yachts (Ferretti Yachts), Pershing, Itama, CRN, and Custom Line — are globally recognized symbols of luxury, uniqueness, Italian design, quality, craftsmanship, innovation and performance.

Ferretti's largest controlling shareholder is Weichai Group from Shandong, China, which holds 86.055% of the shares, while the second largest shareholder is F Investments, controlled by the world's top supercar brand Ferrari Family, holding 11.138% of the shares.

In terms of financial data, from 2018 to 2020, the company achieved revenue of approximately 631 million euros, 678 million euros and 638 million euros respectively; net profit of 30.72 million euros, 26.599 million euros and 21.882 million euros during the same period. In the first nine months of 2021, it achieved revenue of approximately €693 million and net profit of €3,089 million.

In terms of industry, the global yacht market grew steadily from 2016 to 2019, but declined in 2020 due to the pandemic. As ultra-high net worth individuals and extremely high net worth individuals are expected to maintain steady growth in the future, and their demand for yachts in the post-pandemic era is growing rapidly, the global yacht market is expected to bottom out between 2020 and 2025, reaching 26.8 billion euros in 2025, with a compound annual growth rate of 7.3% between 2020 and 2025.

In terms of Cornerstone investors, a number of Cornerstone investors agreed to subscribe for the number of shares available for purchase at the sale price, totaling about US$129.5 million, including Sunshine Insurance, Sanya Development and Investment, Hainan Free Trade Port Fund, Hainan Financial Holdings, and Haifa Holdings.

In terms of fund-raising purposes, based on the median issue price, the company's net income was approximately HK$1,944 million (assuming that the over-allotment rights were not exercised). According to the prospectus, the company intends to use the net proceeds from the sale of shares for the following purposes:

68% will be used to expand the product portfolio and further drive superior end-to-end operations; 24% will be used to strengthen the unique portfolio of ancillary services and expand the most promising vertical segments; and 8% will be used to further develop branding activities and other general corporate purposes.

$Ferrari (RACE.US)$

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