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Chrysler files for $100M IPO

The automaker hasn't yet provided a proposed symbol. JPMorgan is the lead underwriter. (S-1)

Chrysler had 1H revenue of $33.4B (+1% Y/Y), and net income of $764M (down from $966M a year earlier). 1H operating cash flow was $2.18B, and capex $1.66B.

Cash/equivalents amounted to $12.2B at the end of 1H, restricted cash $349M, and long-term financial liabilities $13.1B.

Fiat (FIATY.PK) owns 58.5% of Chrysler. CEO Sergio Marchionne mentioned last week a Chrysler IPO filing is on the way, and that the company is likely to begin trading in Q1 2014 (though it could list this year). Fiat wants to gain full control over Chrysler, but has been at odds with the UAW's healthcare trust (owns the remaining 41.5%) over price.

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Comments (3)
  • Tales From The Future
    , contributor
    Comments (6407) | Send Message
    Doesn't sound like a lot considering the brand names alone...
    23 Sep 2013, 11:24 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (6407) | Send Message
    Ie. sounds like fees only, the float would be too small to just sell shares for 100M? Makes no sense to me.


    All in all, Chrysler looks valued at 5-10bn USD:


    Under Marchionne, Chrysler has mounted an unlikely comeback that has pushed its valuation to around $10 billion, according to some analyst estimates. The U.S. automaker is now propping up Fiat's bottom line, rather than the other way around
    24 Sep 2013, 01:18 AM Reply Like
  • DavidHart
    , contributor
    Comments (40) | Send Message
    This appears to just be a negotiation tactic by the UAW trust fund to get FIAT to increase their offer for the rest of Chrysler. FIAT owns about 60% while the UAW owns about 40%.


    Chrysler has been profitable over the last few years thanks to the Jeep brand. As a result, the valuation of the company has increased. The UAW trust fund wants $5 billion for their shares, which is the maximum set by the negotiated bailout deal.


    This is anecdotal evidence, but I bought a Jeep this year and have been hanging out in the Jeep forums. From comments that I have read, Jeeps are selling quickly in the US.


    However, Chrysler's Jeep pricing in Canada is out of whack. My brother-in-law wanted one but it costs $15K more in Canada for the same Jeep model that I bought in the US. And this is with the Canadian currency being on par with US dollar. Chrysler also will not honor the warranty for any car bought in the US and imported into Canada (Ford does). If anyone from Chrysler is out there, you seriously need to look at your pricing model for Canada or you're going to lose a ton of business to Ford.
    24 Sep 2013, 11:31 AM Reply Like
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