Ferrari NV said Dec. 28 it will buy back €1.5 billion of its common stock by 2022.
The sports car maker aims to begin the multiyear share buyback program with the repurchase €150 million worth of shares between Jan. 1, 2019, and June 27, 2019. Under the initial repurchase, shares worth €100 million will be bought back on the MTA market, while the remaining €50 million in buybacks will be made on the New York Stock Exchange. Ferrari will fund the buybacks with available cash.
The shares bought back will be used to meet the obligations from the company's equity incentive plan. The program will replace Ferrari's any previous repurchase program.
Ferrari said the repurchase program implements the decision taken during the shareholder's meeting April 13 to purchase up to 10% of Ferrari's common shares within 18 months from the meeting.