Pirelli: board excitement builds as Italian tyre giant prepares to go public
The imminent Pirelli IPO
There is excitement among the board of directors at Pirelli, the multinational tyre manufacturer
based in Milan, as the Italian CEO Marco Tronchetti Provera has confirmed that the company is to go public later this year. Pirelli, which was listed on the Milan Stock Exchange from 1922 until 2015
when it was bought by ChemChina, is now set to re-list. It is yet to be confirmed whether the
company with once again be put on the Borsa Italiana or whether the owners will opt for an
international stock exchange. The listing is due to take place before the end of the year in order to
take advantage of market opportunities available from the fourth quarter of 2017 (read also Pirelli Reportedly Racing to Milan IPO Valued at Nearly $11 Billion). The forthcoming
IPO is offers an exciting opportunity for Pirelli which plans to take the opportunity to refinance its
credit lines on better terms. Pirelli reports growth ahead of IPO, so for investors the opportunity to make money with the IPO Pirelli is really huge.
Pirelli: a brief history
Pirelli is one of the largest tyre manufacturers in the world, producing a broad range of tyres (over
1900 models) and in particular providing products for the premium and prestige end of the market.
It has partnerships with leading makers of prestige and luxury vehicles such as Lamborghini,
Maserati, Pagani, Porsche, and Ferrari in addition to being an official Ferrari supplier. The
company, which was the first of its kind in Italy when it was founded in 1872 by Giovanni Battista
Pirelli, originally specialised in rubber products and later expanded into the manufacturing of cables
and tyres. Today Pirelli is purely a tyre manufacturer and has 19 manufacturing site in 13 countries
across 160 countries and a network of around 12,500 distributors and retailers.
Pirelli has a long history of sports sponsorship – it has been supplying racing tyres since 1907 – and
today Pirelli tyres are used in over 300 different championships. Pirelli is currently the exclusive
tyre supplier of the world superbike championships, the Ferrari Challenge, the Lamborghini
Blancpain Super Trofeo Competition and the Maserati Cup. Pirelli has also been the exclusive tyre
supplier to Formula 1 since 2011 and is contracted to continue in this capacity until at least 2019.
The legendary Pirelli calendar
Pirelli is a name which is familiar even to those who know little to nothing about the worlds of cars
and tyres, due to the large cultural influence of its legendary calendar. First produced in 1964, the
annual calendar known as 'The Cal', is famed for its exclusivity and limited availability as it is only
given as a corporate gift to a restricted number of Pirelli customers, celebrities and insiders in
various industries. Initially, and for much of its history the calendar was famous for its tasteful and
artistic pictures of scantily clad super models taken by famous photographers. However, recent
years have seen a departure from the traditional pin-up style pictures and a move towards more
fashion forward artistic endeavours. In 2016 Pirelli commissioned Annie Lebovitz to shoot women
known for their “profesional, social, cultural, sporting and artistic accomplishment” and then in
2017 the calendar featured actors of all ages, fully clothed and without heavy makeup. The 2018
edition is notable and has been widely commented on for its all black cast styled by Edward
Enninful, the new editor of British Vogue. It is not the first time that the Pirelli calendar has had an
all-black cast, but the 2018 edition marks a continuation of the trend the calendar has taken in recent
years to provide social commentary.