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Fiat delays Chrysler IPO

Uncertainty about whether Italian family business Fiat will buyout the remaining stake in US carmaker Chrysler looks set to remain into the new year, with the company announcing a planned partial listing will not happen before the end of the year.

Uncertainty about whether Italian family business Fiat will buyout the remaining stake in US carmaker Chrysler looks set to remain into the new year, with the company announcing a planned partial listing will not happen before the end of the year.

The IPO would help determine the value of Chrysler, and could resolve a long-running stand off between Fiat and Veba – a health care trust that owns a 41.5% and has valued the company at around double Fiat's estimate.

According to the Wall St Journal, Chrysler expects to raise $1.5 billion to $2 billion from the listing of the 16.6% stake, which would value the company at around $9 billion to $12 billion.

This is more closely aligned to Veba’s valuation of its share, which it has said is worth $5 billion.

Fiat wants to buy the remaining stake in Chrysler so it can create a merger between the two carmaking companies.

If the move went ahead, it would form the seventh largest car company in world, and make it easier for the two companies to merge their finances.

A statement released by the Fiat board of directors said it would continue to work on the necessary steps for an IPO to go ahead in the first quarter of 2014.

But it said no assurance could be given to the timing at this stage as it was subject to market conditions and “other relevant considerations”.

Fiat bought its stake in Chrysler as it emerged from bankruptcy in 2009, and has seen sales increase nearly 50% since then. 

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