Fiat is planning to fund $61bn over the next five years to turn Maserati and Alfa Romeo into global brands and spin off its luxury sports car maker Ferrari and list the shares.
The company is considering to issue $2.5bn convertible bonds to fund its ambitious growth plan.
FCA is planning to sell around 100 million of its shares which includes treasury shares and stock which the company plans to issue to offset a share buyback from Fiat investors, Reuters reported.
FCA Chairman John Elkann said: "I am delighted to have taken this additional step in the development of FCA.
"Coupled with the recent listing of FCA shares on the NYSE, the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business."
FCA CEO Sergio Marchionne said, "Following our acquisition of the minority interest in Chrysler earlier this year, the transformation of Fiat and Chrysler into FCA was completed earlier this month with our debut on the New York Stock Exchange.
As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari," Marchionne added.
"The Board supports management's determination that this transaction represents FCA's best course of action to support the long term success of the Group while at the same time substantially strengthening FCA's capital base."
As part of spin off, the company will go for public offering of FCA's interest in Ferrari which is equal to 10% of Ferrari's outstanding shares and a distribution of FCA's remaining Ferrari shares to FCA shareholders .
