Last year, Fiat Chrysler revealed that it will be spinning out Ferrari as a separate company, with the company to offer about 10 percent of the outstanding shares of Ferrari to the public in an IPO.

Fiat Chrysler has now filed the paperwork to offer a total of 17,175,000 Ferrari shares on the New York Stock Exchange, which values the luxury car company at nearly $10 billion at a share price of $48 to $52 each.

This valuation will make Ferrari a "decacorn," which is ten times a "unicorn," referring to startup companies that have a valuation of $1 billion. Ferrari will be joining a hefty list of decacorns that includes Airbnb, Pinterest, Snapchat and Dropbox.

Ferrari was founded nearly 70 years ago in 1947, but it has not slowed down in releasing amazing vehicles. The company has also become a household name due to the popularity of its Formula One racing team, which is actually the original reason for the existence of the company. The logo of Ferrari, the prancing horse, is also one of the most memorable ones not just in the automobile business, but across all industries.

What does the IPO mean for Ferrari? For one thing, the car company would be facing increased pressure from the influx of shareholders, who would be looking to generate profits from their investments. This could push Ferrari to increase its sales volume that currently stands at 7,000 vehicles per year. Ferrari could be looking to release vehicles that are built less for the racetrack but are more profitable, such as SUVs.

Porsche has gone towards this direction, and has found success in the move. However, Ferrari purists could be cringing at the possibility of the car company releasing an SUV.

It is unclear, however, how Ferrari would operate as a standalone company, especially with the federal fuel efficiency standards it needs to follow in terms of average miles per gallon. Ferrari had some space to operate while part of Fiat Chrysler, as there were other vehicles that would pull up the average for the entire company. With Ferrari becoming a separate company, it would have to watch its average miles per gallon for its vehicle lineup.

For Fiat Chrysler, on the other hand, launching an IPO for Ferrari will be used as a way to source funds for an investment program worth $54 billion for the improvement and expansions of its Alfa Romeo, Jeep and Maserati brands.

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