Chrysler To File IPO Documents This Week
Chrysler Group LLC, one of the largest auto companies in the world, will be submitting documents for their initial public offering this week, according to CEO Sergio Marchionne in an interview with the Financial Times.
Marchionne said that all of the work, preparation, and drafts have gone through. Marchionne is also the CEO of Chrysler parent company Fiat.
An agreement for Fiat to acquire the remaining stake in Chrysler still has to happen though. This stake is owned by the UAW healthcare trust VEBA, but Marchionne does not believe that this will require much more work. Fiat and Chrysler combined would be the seventh-largest auto group in the world.
VEBA owns 41.5% in Chrysler and the talks have been slowed down because Marchionne believes the trust values the company more than what it is worth. VEBA will sell off a part of their stake in the IPO and divest the rest over time. Earlier this year, VEBA exercised a legal right to demand 16.6% of Chrysler to be listed. This listing could happen later this year.
The value of the stake still has to be determined. Fiat valued Chrysler at around $4.2 billion, but VEBA believes it could be worth as high as $10.3 billion.