BY APB Staff on 31 Mar 2022

Around 70 per cent of the IPO total is made from Asian cornerstone investors

Ferretti Group started trading on the Hong Kong stock exchange yesterday, after a successful IPO that valued the company at US$993m.

At HK$22.88 per share (US$2.92), the price falls at the lower end of the proposed range, which had valued the company at up to US$1.2bn.

Ferretti offered 83.58 million shares, or around 25 per cent of its total equity capital, to raise approximately HK$1.77 billion (US$226m) after fees and expenses. 

Ferretti Group, whose brands include Pershing, Riva, Custom Line, CRN and Wally, is owned by the Chinese conglomerate Weichai Group. The company had previously attempted a listing in 2019, but held off citing concerns over a relatively weak market and a lowered share price.

But the boom in yacht sales linked to the pandemic has changed this perception. Share prices for Sanlorenzo, a chief competitor of Ferretti Group, have risen dramatically, from €16.50 at the end of 2020 to €36.30 as of December 21, 2021.

CEO Alberto Galassi

Shortly after the IPO, Ferretti CEO Alberto Galassi spoke with the Financial Times.

“I am exhausted but very happy. It hasn’t been all smooth sailing, especially given the geopolitical context, but the outcome is above our expectations,” he says. “Our shareholders were extremely [confident], then we also realised the war in Ukraine is seen as further away by investors in the Asia-Pacific region, who were more comfortable to invest at this stage.”

Around 70 per cent of the IPO total is made from Asian cornerstone investors.

While the Ukrainian conflict has unsettled the European market, Ferretti recently put out a statement playing down concerns, claiming that less than 3 per cent of its total revenue originates from “areas currently involved in the conflict.”

It added: “Ferretti Group has no exposure to the mega and gigayacht segment, the one of greatest interest to the Russian elites most affected by international sanctions. Furthermore, as of today, the Group is not aware of any sales to subjects targeted by these sanctions.”

Ferretti Group fleet in Hong Kong

Ferretti S.p.A. was among the top 10 industry players in terms of the number of superyachts sold in 2021. As of December 31, 2021, the company’s order backlog was €1,015.8 million, with a net profit of €37.4 million.

“We are proud that the value of Ferretti S.p.A., the financial soundness of our shareholders and the work of our management team have been recognised by so many global investors,” Galassi says in a media statement.

“Thanks also to their confidence, we will continue our growth with more power and acceleration. We are sure that we will be able to seize even more opportunities, leading the international yachting business,” Galassi continues. “Ferretti S.p.A. is the most relevant European company to have successfully completed the listing in the latest months; the market has welcomed us with great enthusiasm, as one of the epitomes of pure Italian luxury in the world.”