Ferretti to go Public, Confirms IPO on Hong Kong Stock Exchange
Following much industry speculation, Italy’s Ferretti SpA today announced the proposed listing of its shares on the Main Board of The Stock Exchange of Hong Kong Ltd (SEHK).
The Italian boatbuilder plans to offer an aggregate of 83,580,000 shares (the “Offer Shares”) under the Global Offering (subject to the Over-allotment Option), comprising an international offering (the “International Offering”) of 75,222,000 shares (subject to adjustment and Over-allotment Option) and Hong Kong public offering (the “Hong Kong Public Offering”) of 8,358,000 shares (subject to adjustment), at a price range between HK $21.82 and HK$ 28.24 per Offer Share.
The IPO values the company at around $931 million to $1.2 billion (€844m-€1,093m). As of 31 December 2018, 2019, 2020 and 2021, Ferretti SpA’s order backlog was $781 million (€708.5m), $829 million (€751.9m), $763 million (€691.6m) and $1.1 billion (€1,015.8m), respectively. The company’s net revenue was $679 million (€615.4m), $716 million (€649.3m), $674 million (€611.4m) and $991 million (€898.4m), respectively, and the net profit was $33.9 million (€30.7m), $29.3 million (€26.6m), $24.3 million (€22.0m) and $41.3 million (€37.4m), respectively.
Growing the Brand
Moreover, between 2016 and 2020, with the company’s net revenue increasing at a CAGR of 5.2%, Ferretti SpA outpaced the CAGR of the global yacht industry and consistently outperformed the market.
“Ferretti SpA continues to grow as the world’s most influential luxury yachting group, driven by unique style, innovation, sustainability, and economic achievements,” said Ferretti CEO and executive director, Alberto Galassi, in a statement. “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.”
He continued, “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 SpA will continue to pursue its strategic mission to design, manufacture and deliver peerless masterpieces of the sea, crafting pure Italian luxury,” he adds.
Expanding Segment
According to The Industry Consultant, the size of the global yacht industry and the number of global VHNWI and UHNWIs continues to grow. The inboard yacht segment, outboard yacht segment and the sailing yacht segment are forecasted to grow even further at a CAGR of 7.6%, 6.1% and 10.7% to $12.6 million (€11.4bn), $12.7 milion (€11.5bn) and $4.4 million (€4.0bn) from 2020 to 2025, respectively.
With growth already outpacing that of the global yacht industry, Ferretti SpA is well-positioned to capitalize on the continuous expansion of the inboard yacht segment, its core market, while seizing growth opportunities in the fast-growing outboard and sailing yacht segments globally.
Ferretti SpA is also well-positioned to capture significant opportunities in other major geographies around the world while continuing to consolidate its leading position in EMEA. In particular, with a low level of penetration and favorable government policies in APAC, Ferretti SpA says it will fully unleash its potential in APAC in the future.
In addition, Ferretti SpA tapped into the global coastal patrol and rescue vessel industry with the launch of FSD (Ferretti Security Division), the security vessel business division, in February 2016. According to The Industry Consultant, the market size of the coastal patrol and rescue vessel industry is forecasted to further increase at a CAGR of 13.6% to $12.4 billion (€11.2bn) from 2020 to 2025. The company is convinced that FSD has enabled and will continue to enable it to tactically capture the opportunities in this flourishing market, providing it with an additional high-margin revenue stream.