Ferretti Group Hong Kong, S.A.R., China IPO plans move forward

Plans by Ferretti S.p.A. (“Ferretti Group”) are moving forward following the group filing a listing application Form A1 to the Hong Kong, S.A.R., China Stock Exchange on December 24, 2021.

It is understood, according to a Lloyd’s List report from Hong Kong, S.A.R., China that Ferretti Group plans to raise up to $471m from the listing. The report suggests that the leading Italian yacht building group, which is a subsidiary of the state-owned Shandong Heavy Industries Group, will use the proceeds of the listing to both develop new yacht models and to acquire suppliers as the industry moves forward.

Ferretti Group currently has seven active brands – CRN, Ferretti Yachts, Pershing, Riva, Itama, Wally and Custom Line. It also owns the Mochi brand which is currently not under development.

The amount anticipated to be raised by the Hong Kong, S.A.R., China, IPO is over four times the initial amount of $100m when the plans for the IPO were first made known last December. Under the listing, IBI understands that Ferretti will issue some 83.6m new shares with a valuation between HK$2.5bn ($321m) and HK$3.7bn ($470m), equating to between HK30.10 and HK44 per share.

The Lloyd’s List report points out that apart from an over-allotment option of about 12.5m shares extra, the listing will equate to 25% of the company’s total post-issue equity interest and bring the market value of the builder to €1.1bn-€1.7bn ($1.3bn-$1.9bn).

Ferretti Group did try for an IPO on the Milan Stock Exchange in 2019 but did not proceed due to a low market. For the current listing the China International Capital Corp, is said to be the sole promoter for the IPO and the report quoted it saying: “Ferretti should enjoy a palpable valuation premium against other yacht makers.”

A yacht market analysis suggests that Ferretti holds about a 15% share and the IPO proceeds will be applied to developing new yacht models; buying an Italy-based windsurfing yacht company plus purchasing four to five local suppliers.

The Lloyds List report indicated that Ferretti was planning to develop new types of superyachts - a key growth area for Ferretti over the past few years. The group has moved from CRN being its main superyacht custom new build brand along with Custom Line (reponsible for its smaller superyachts), to also developing superyacht sized models in its Ferretti Yachts, Pershing and Riva brand portfolios.

Ferretti set up a dedicated superyacht division with its main build location being Ancona where there’s been a large investment in new sheds and launch systems for all brands except Ferretti Yachts. Ferretti Group, like other yacht builders, has seen its financial results and order book size grow considerably over the past year or so.

In respect of shareholding Shandong Heavy Industries has 86.1% and Ferrari the remaining 13.9%.

Sources:ibinews.com