Fiat Chrysler Selling 87 Million Shares

DETROIT (Detroit Free Press/TNS) -

Fiat Chrysler Automobiles said Thursday it has launched a public offering of 87 million shares of common stock as the automaker works to raise capital to help it with an ambitious five-year strategic plan.

The public offering of shares will give both institutions and independent investors the opportunity to buy a share of stock in the automaker.

While Fiat Chrysler Automobiles stock began trading on the New York Stock Exchange on Oct. 13, all of those shares were owned by investors who previously owned Fiat Spa stock.

The automaker also said Thursday that it has launched an offering of convertible securities worth $2.5 billion. Those securities will be converted into Fiat Chrysler shares in 2016.

The company also plans to spin off its Ferrari brand and will sell a 10 percent stake in an IPO next year.

Plans to sell the shares and convertible securities were announced on Oct. 29, but a date for the offerings was not announced until Thursday.

Fiat Chrysler said it intends to use the proceeds from the sale of shares and the securities for general corporate purposes.

In May, Fiat Chrysler CEO Sergio Marchionne unveiled an ambitious five-year plan that calls for the company to invest as much as $60 billion to hit aggressive goals.

The goals include boosting revenue from $110 billion in 2013 to $167 billion in 2018 and vehicle sales from 4.4 million to 7 million annually.

Since the company’s stock began trading on the NYSE in October, it has risen about 50 percent. Shortly after the markets opened Friday morning, the shares were trading at $13.54.