Aston Martin sets £5.07bn IPO valuation

By Wale Azeez

Luxury carmaker Aston Martin is looking to raise up to £1.3bn when it floats on the London Stock Exchange next month, seeking a market valuation of up to £5.07bn.

The Lagonda and DB7 manufacturer has set share price range for its imminent listing at between £17.50 and £22.50 per ordinary share.

That range will give the company a likely market capitalisation of between £4.02bn and £5.07bn.

The company will be the first UK carmaker to float in London since the 1980s.

It hopes to announce its final pricing by 3 October and expects its shares to be admitted to the stock exchange around 8 October.

Releasing its Initial Public Offering (IPO) prospectus on Thursday, Aston Martin confirmed that it will be floating a 25% stake in the business equivalent to approximately 56,775,792 shares.

Those shares will come from existing shareholders, including Investindustrial, Adeem Investments, Primewagon and senior management.

Aston Martin president and group chief executive Andy Palmer said the company was pleased to be able to offer shares "not only to institutional investors but also to our eligible UK resident employees, customers and members of the Aston Martin Owners Club".

Aston Martin said that German car giant Daimler will remain a stakeholder and will now sell down its holding at the IPO, converting its current non-voting stake of 4.9% to shares.

Mr Palmer 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.

"Over the past four years the benefits of the Aston Martin turnaround to the UK economy have been profound.

"We have secured and created thousands of jobs in the West Midlands and South Wales, boosted our investments in manufacturing and engineering and increased our spend with local suppliers."

Sky News revealed details of Aston Martin's forthcoming IPO last month.

Aston Martin employs more than 2,700 people, and sells its cars in 53 countries.

It sees the flotation helping to fund expansion plans, which include the opening of a new manufacturing plant in St Athan in Wales next year.

Aston Martin reported adjusted underlying half-year profits up 14% at £106m for the first half of 2018, on revenues up 8% year-on-year to £445m.

Its has benefited from a strong performance in overseas markets including China, where it plans to open 10 new showrooms./sky