Ferrari prices IPO at $52 per share, bringing its market capitalization to $9.8Bn

Ferrari priced on Tuesday its initial public offering at $52 giving the high-end car manufacturer a market capitalization of about $9.8 billion.

CNBC reported that the price is higher than the previously indicated range, which is from $48 to $52 per share. The company is floating some 17.18 million shares to the public for its planned IPO. That amount of shares makes 9 percent of the company. The carmaker raised almost $900 million in public capital through its IPO. There are reports indicating that the demand for Ferrari's shares was well oversubscribed.

Ferrari is controlled by giant car brand Fiat Chrysler Automobiles. In a report by Philly Voice, the proceeds of the IPO will help fund FCA's plans to revamp its Alfa Romeo, Maserati, and Jeep brands. FCA took Ferrari public to sell ten percent of its 90 percent stake in the luxury car company.

According to a report published on Mashable, FCA will give the rest of its 80 percent to its shareholders to finance its $54.5 billion plan for the advancements of its other high-end car brands. The Ferrari IPO will give $900 million dollars more to fund that ambitious undertaking.

CNBC cited sources familiar with the subject saying that underwriters and executives considered pricing their IPO at $53 per share. But they ultimately resolved to stick with $52 to send a message of prudence to investors. They also aimed to create an upsurge in Ferrari's first day of trading publicly as well as payment company First Data's IPO debuting under the expected price range.

It is important to take note that Ferrari's IPO comes a week after the turmoil from Wal-Mart pushed supermarket chain Albertsons to postpone its IPO despite negative pricing pressure.

The Maranello, Italy-based carmaker is expected to start trading its shares to the public on Wednesday in the New York Stock Exchange using the symbol "RACE."