Ferretti confirms IPO on Hong Kong stock exchange

Italian luxury boatbuilder Ferretti Group is to go public, and has confirmed details of the proposed listing of its shares on the Main Board of the Stock Exchange of Hong Kong Ltd (SEHK).

Ferretti plans to offer a total of 83.58 million shares, equivalent to around 25 per cent of its total equity capital, to raise up to US$301 million. Shares are to be priced at HK$21.82 to HK$28.24 each, and the IPO values the company at US$932 million-US$1.2 billion.

Ferretti, whose brands include Custom Line, Itama, CRN, Riva, Pershing and Wally, is present in over 70 countries and has been owned by the Chinese industrial conglomerate Weichai Group since 2012. In 2019, the company also attempted a listing, but it achieved a relatively low share price amid a weak market and changed its mind.

Thanks in part to a yachting boom caused by the pandemic, things are different now. Its rival Sanlorenzo has seen share prices rise dramatically, from €16.50 at the end of 2020 to €36.30 at the end of 2021.

Ferretti Group reported a significant rise in its order book during the pandemic, hailing 2020 as a record year for sales. The company says it currently has an order backlog of €1,272 million, as of 28 February 2022, and an order intake of €308 million in the first two months of 2022.

The company’s Hong Kong Public Offering began at 9am on 22 March and closes at midday on 25 March in Hong Kong. Dealings in shares on SEHK are expected to commence at 9am on 31 March, with the stock code 9638.HK in board lots of 100 offer shares each.

According to a statement made by Ferretti, the company was among the top 10 industry players in terms of the number of superyachts sold worldwide in 2021. As of December 31, 2018, 2019, 2020 and 2021, the company’s net profit was €30.7 million, €26.6 million, €22.0 million and €37.4 million, respectively.

“Ferretti S.p.A. continues to grow as the world’s most influential luxury yachting group, driven by unique style, innovation, sustainability, and economic achievements,” says Alberto Galassi, the CEO and executive director of Ferretti Group. “We will keep investing significantly in research and development to launch a number of new models every year, further broadening the product portfolio to meet the needs of a rapidly evolving market and the expectations of our very selective customers.

“We have a special focus on the ongoing development of new cutting-edge models, mainly in the high-potential made to measure category, with the aim of being a leading player in the most profitable segment of the market. In parallel, we will carefully explore new opportunities in the ancillary services such as brokerage, chartering, after-sales refitting and brand extension activities. Ferretti S.p.A. will continue to pursue its strategic mission to design, manufacture and deliver peerless masterpieces of the sea, crafting pure Italian luxury.”

While the ongoing Russia-Ukraine crisis and subsequent ban of yacht exports from Europe to Russia have caused concern among builders in the region, Ferretti has downplayed concerns. Earlier this month, the company issued a statement confirming it sees “no significant consequences for business volume” as a result of the ongoing crisis, adding that it has a “geographically diversified commercial strategy” and an exposure of just 3 per cent in terms of revenues to the areas currently involved in the conflict.