Ferrari Could Be Worth $12.4B in Its Looming Initial Public Offering

Ferrari could fetch a $12.4 billion valuation in its looming initial public offering, according to a Bloomberg report. That's higher than the $11 billion forecast, made over the summer by the luxury automaker's CEO. Fiat Chrysler Automobiles (FCAU), which owns Ferrari, is expected to divest a 10 percent share of Ferrari via an IPO at some point this month, reports say. Some 80 percent of the company will be owned by Fiat Chrysler stockholders, while the remaining portion is expected to be held by Piero Ferrari, whose father founded the company. The stock will trade on the New York Stock Exchange with ticker FRRI. Ferrari's cars are for the uber wealthy, with a starting price of around $200,000. Back in 2013, the ultra-luxury automaker set a limit on the number of cars produced each year to 7,000. The limit was an attempt to maintain exclusivity of the one of the auto market's most luxurious brands. But that will soon change. The company said it will raise production to 9,000 cars over the next four years, according to an SEC filing. TheStreet's Scott Gamm reports from New York.