Published: Sat, October 06, 2018
Business | By Eloise Houston

Aston Martin valued at £4.33bn as float begins

Aston Martin valued at £4.33bn as float begins

Aston Martin initially floated about 25 percent of the company, with an option to offer additional shares if there was strong investor demand.

Aston, which has a long-running association with the fictional British spy, said in a statement that it has priced its initial public offering (IPO) at £19 per share in the middle of its stated range.

Aston Martin is floating 27.5pc of its business on the London Stock Market.

Aston Martin is an exception in the Uk because not only it is poised to become the single automotive group listed on the stock Exchange but it is also one of the very few manufacturers which purely british.

In the first half of the year, Aston Martin reported a pre-tax profit of £20.8m on revenue of £449.9m. Both figures are more in line with luxury-goods companies than other automakers.

Britain's Aston Martin has gone bankrupt seven times in its history, was due to begin conditional trading on the London Stock Exchange today. The calculation doesn't take into account Aston Martin's debt, and research and development spending, which would push the multiple higher. It's also reviving the Lagonda name to break into the segment shared by United Kingdom rivals Rolls-Royce Motors and Bentley.

Investors and analysts were concerned, however, about the execution risk related to its plans for rolling out new models.

But under Mr Palmer, a former Nissan executive, the company has been broadening its product range and has moved into new areas. The company has said it has no fears about Brexit, but it may be no coincidence the price has fallen as negotiations between the United Kingdom and the European Union take an uncertain turn.

"We are excited about the momentum across the company and are fully focused on continuing to deliver our exciting growth strategy".

Shares opened flat at £19, but started to lose ground, coughing up more than 4% in early trading.

The listing marks the first IPO of a United Kingdom carmaker in more than three decades, since Jaguar was spun into an independent company under Margaret Thatcher's government in 1984.

Private Equity Holding is invested in Aston Martin via a direct co-investment and holds further indirect exposure through its investment in Investindustrial V and BI-Invest Endowment Fund. "I was not involved", he said. Ferrari reviewed a potential acquisition as a way to attract new customers, said people familiar with the matter.

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