Yacht maker’s westward detour comes at a price

Ferretti SpA

27/06/2023 11:19

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
       LONDON, June 27 (Reuters Breakingviews) - Hong
Kong-listed Ferretti  9638.HK  went the extra mile to ensure its
shares could finally trade in Europe. The 1 billion euro Italian
manufacturer of pricey Riva speedboats, bought by Chinese
conglomerate Weichai in 2012, had to pay chunky fees and woo
unusual backers to pull off a second listing in Milan. That’s
the price to pay to secure a geopolitical hedge.  
    Ferretti’s homecoming was off to a slow start on Tuesday. An
initial 4% rally quickly fizzled out and shares fell below the
Italian company’s 3-euro-per-share offering  YACHT.MI . At 13
times its expected 2023 net profit , Ferretti traded at a
discount to rival Sanlorenzo’s  SNL.MI  15 times multiple.
That’s a modest outcome for a company that has laboured since
2019 to try and list in its Italian home base. To ensure maximum
interest, Weichai paid 4% of the listing proceeds to banks like
Goldman Sachs  GS.N  and JPMorgan  JPM.N  involved in its
Italian stock market sale, according to financial specialist
publication IFR. That compares to the 2.5% fee Italian gambling
company Lottomatica  LTMC.MI  paid for its Milan market debut in
May. Weichai also had to win early backing from a group of
anchor investors mainly comprised of European tycoons Danilo
Iervolino and Karel Komárek, and an Abu Dhabi fund. They
pre-ordered nearly half of the stock sold by Ferretti’s Chinese
owner, and are now expected to collectively own 13% of the
speedboat maker. 
    Weichai will still hold on to nearly a third of Ferretti’s
shares after its Milan listing. The East-to-West journey looks
expensive. But at least CEO Alberto Galassi is reassured the
company has less exposure if caught in a showdown between China
and the West. (By Yawen Chen)
    
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 (Editing by Lisa Jucca and Oliver Taslic)
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