Fiat Chrysler Automobiles N.V. (NYSE: FCAU) announced in July that the company would spin off its Ferrari division into a separate company, and on Friday the company provided some specifics. In a filing with the U.S. Securities and Exchange Commission (SEC) under the name of “New Business Netherlands NV,” the about-to-be independent Ferrari said it would sell 17.175 million shares in an initial public offering (IPO) in an expected price range of $48 to $52.

At the mid-point of that range, the company would realize gross proceeds of about $860 million, and the company would be valued at around $10 billion.

The sale comprises about 9% of the stock in the company, which will be renamed Ferrari N.V. shortly before the IPO. Fiat Chrysler will not receive any of the proceeds from the offering, and the remaining 80% of Ferrari stock that it owns will be spun off to shareholders in Fiat Chrysler. The remaining 10% of the new company will continue to be held by Piero Ferrari, son of Ferrari founder Enzo Ferrari.

Joint bookrunners for the IPO include UBS Investment Bank, Bank of America Merrill Lynch, Allen & Company, Banco Santander, BNP Paribas, JPMorgan and Mediobanca. Shares are expected to price in the week of October 19 and will trade on the New York Stock Exchange under the ticker symbol RACE.

ALSO READ: Mercedes Has Diesel Emissions Issues Too

The high-end car business has been very good for Fiat Chrysler. Sales of Ferraris and Maseratis totaled more than 40,000 last year. CEO Sergio Marchionne wants to expand the luxury range downward, and that led to the retirement last October of Ferrari’s long-time chief, Luca Cordero di Montezemolo.

Marchionne plans to increase production gradually to 10,000 units. Montezemolo wanted to maintain production at around 7,000 to underscore Ferrari’s exclusivity. He had a point: according to British brand research firm Brand Finance, Ferrari last year was named the world’s most powerful brand for the second year running.

The Fiat chief sees the market for premium cars widening, with Maserati and others now producing cars that are expensive, but not quite at the nose-bleed levels that typify Ferrari. For example, Ferrari’s 2014 California rings in at just under $200,000 for the base model, while the 458 Italia carries a base price of more than $250,000. The Ferrari FF lists for $295,000 and the F12berlinetta coupe has an MSRP of nearly $320,000. That is before customization — and that is where the real money gets spent. Customization gets the credit for the revenue jump at Ferrari under Montezemolo.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.