BNP Partners Reports Ferrari Stock Pops 13% On Debut

2024-04-21 07:31:02 Business

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BNP Partners? says most of its clients lucky enough to be allocated Ferrari shares took profits on the company?s debut.

Shanghai, China headquartered broker-dealer, BNP Partners reports that 80% of its clients who received allocations of Ferrari IPO stock took profits on the day of the company?s debut on the New York Stock Exchange.

The highly-anticipated stock floatation was heavily over-subscribed and raised US$893 million for the luxury sports car maker while valuing the jewel in Fiat Chrysler?s crown at US$9.8 billion. The stock debuted at the top end of its pricing range of $48-52 dollars and jumped 13% in early trading.

?Those of our clients who received their allocations sold at the day?s highs on our recommendation,? said Gerald E. Powers, Chief Investment Officer at BNP Partners. ?We advised clients with a longer-term view on the stock to retain their holdings. We cited the likelihood of a continuation of the Federal Reserve?s zero interest rate policy and the potential for monetary stimulus further down the road into next year as providing plenty of upside potential for the stock,? added Powers.

Investor concerns that global economic worries might dampen appetite for Ferrari?s IPO were proven to be largely baseless although the stock fell in tandem with markets in subsequent trading sessions.

?What we?re taking away from this fantastic debut is that Ferrari?s IPO had something for everyone. Those looking for a quick profit were not disappointed while those with a longer-term investment horizon will almost certainly be rewarded with significant upside potential as the company continues to advance in terms of exclusivity and technological innovation, both on the road and in motorsport,? concluded Powers.

About BNP Partners:
At BNP Partners, they define effective wealth management as an overall strategy that seamlessly integrates their clients? personal ROI (return-on-investment) aspirations with their investment management prowess.

Whilst today?s markets can often demonstrate the type of characteristics that have served to hamper the efforts of many traditional investment methodologies to secure the returns they once did, BNP Partners continue to secure exceptional returns for their esteemed clients utilizing a meticulously applied combination of those same traditional methods whilst diligently complementing them with new, pioneering techniques.