BY APB STAFF on 21 Dec 2021

Leading Italian yacht builder reportedly looking to raise US$100 million

Bloomberg is reporting that Ferretti Group is considering an IPO in Hong Kong worth US$100 million. Ferretti Group reported record sales at its company briefing at the 2021 Cannes Yachting Festival. In a presentation, CEO Alberto Galassi said that revenue in the first half of 2021 was up 78% compared to 1H 2020. The company had attempted a listing in 2019, but held off citing concerns over a relatively weak market and a lowered share price.

A booming yacht market created in part by the lockdown restrictions due to Covid-19 may have caused a rethink.  Share prices for Sanlorenzo, a chief competitor of Ferretti Group, have risen dramatically, from €16.50 at the end of 2020 to €36.30 as of December 21, 2021.

Ferretti Group Asia Pacific has been enjoying considerable sales success in 2021, with three Custom Line Navetta 30s being sold into Hong Kong in quick succession. Ferretti Group Asia Pacific signed a new dealership in Thailand and has moved to establish a presence in Sanya in 2020 in the wake of lower taxes on yacht imports into Hainan.

In a recent interview with Asia-Pacific Boating, Ferretti Group Chief Commercial Officer Stefano De Vivo said that the company had invested about US$100 million in new models and designs since 2014, thanks to funds provided by the company’s shareholders. He noted that the yard was looking to redevelop its line to focus more on sustainability, with a new line of yachts focused on clean tech. He also said that Ferretti Group’s sales into Asia Pacific accounted for about 11% of total revenue, and that he hoped to increase that soon.

In 2012, Shandong Heavy Industries bought a controlling stake in Ferretti Group for a reported US$500 million. Shandong Heavy Industries is the parent company of Weichai Power, and is a state-owned enterprise.