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Aston Martin unveils details of £5.1bn flotation Aston Martin unveils details of £5.1bn flotation as it prepares for a hard Brexit
(about 1 hour later)
Aston Martin has unveiled the details of its planned stock market flotation, which will value the luxury carmaker at up to £5.1bn. Aston Martin has unveiled the details of its planned stock market flotation, which will value the luxury carmaker at up to £5.1bn, while preparing for the eventuality of a hard Brexit.
James Bond’s favourite car marque has set a price range of £17.50 to £22.50 a share, which would value the company at £4.02bn to £5.07bn. It plans to float a quarter of the stock, nearly 57m shares. James Bond’s favourite car marque has set a price range of £17.50 to £22.50 a share, valuing the company at £4.02bn to £5.07bn. It plans to float a quarter of the stock, nearly 57m shares, and expects the shares to start trading around 8 October.
The flotation is one of only a few big IPOs ahead of the UK’s departure from the European Union next March, and will test investor appetite to back British companies. The IPO marks a remarkable turnaround for a business that has gone bankrupt seven times in its 105-year history. The flotation remains one of only a few big IPOs ahead of the UK’s departure from the European Union next March, and would test investor appetite to back British companies. The IPO marks a remarkable turnaround for a business that has gone bankrupt seven times in its 105-year history.
Andy Palmer, the chief executive, said: “By becoming the only automotive company listed on the London Stock Exchange, Aston Martin Lagonda will provide investors with a fitting opportunity to participate in our future success. Our Second Century Plan gives prospective investors deep insight into how we have executed our turnaround and how we are positioned for growth.” Andy Palmer, the company’s chief executive, told Reuters that the level of interest from investors in the IPO had been “unprecedented”.
Palmer told Reuters that the level of interest from investors in the IPO had been “unprecedented”. He said Aston Martin had boosted its stock of engines and components in case the UK crashed out of the EU without a deal next April. It now holds five days’ supply of engines and components, rather than three days’ worth. Aston Martin makes all its cars in Britain and imports two-thirds of its engines and car parts from mainland Europe.
He argued that as a luxury company, Aston Martin was somewhat insulated from Brexit and trade wars, but stressed that nobody wanted tariffs following the UK’s departure from the EU next March. Palmer added that a hard Brexit would lead to a significant weakening in the pound, which would help the carmaker’s exports. Other carmakers have warned about the impact of any customs checks introduced after Brexit, which could disrupt production and exports.
Aston Martin is majority-owned by Italy’s Investindustrial and Kuwait’s Adeem Investment and Primewagon, which have agreed not to sell their stakes for 180 days. However, Palmer sounded a positive note: “If there are tariffs … for every car we lose because of a 10% tariff into Europe, we presumably pick up from Ferrari and Lamborghini in the other direction because obviously their cars become more expensive in the UK,” he said.
The average cost of a car from an EU country could rise by £1,500 in the event of a no-deal Brexit, the UK’s automotive trade body has predicted.
Aston Martin sells about 25% of its cars into mainland Europe, and a further 30% in the UK. While not welcoming the prospect of a hard Brexit, it believes its exports would benefit further from any weakening in sterling.
Aston Martin is majority-owned by Italy’s Investindustrial and Kuwait’s Adeem Investment and Primewagon, which have agreed not to sell their stakes for 180 days after the IPO.
Germany’s Daimler, which received a stake in Aston Martin in 2013 in exchange for supplying engines and other parts, has agreed not to sell its 4.9% stake for 12 months.Germany’s Daimler, which received a stake in Aston Martin in 2013 in exchange for supplying engines and other parts, has agreed not to sell its 4.9% stake for 12 months.
Aston Martin will publish a full prospectus later on Thursday. It is offering shares to eligible employees, customers and members of the Aston Martin Owners Club resident in the UK. Aston Martin will publish a full prospectus later on Thursday. It has been offering shares to eligible employees, customers and members of the Aston Martin Owners Club resident in the UK.
Last week, Aston Martin appointed Penny Hughes, a former Coca-Cola executive, as its chair, along with a string of other boardroom heavyweights ahead of the IPO.
Luxury goods sectorLuxury goods sector
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