Aston Martin could be valued up to $6.7B in IPO
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Talk of Aston Martin going public by way of an initial public offering (IPO) dates back as far as the brand’s 2008 sale by Ford to a consortium led by Prodrive founder David Richards.
Aston Martin finally made it official in August with the announcement of its intention to float on the London Stock Exchange, and since then the company has established a board of directors, naming Penny Hughes as chairman and keeping Andy Palmer as chief executive officer.
Aston Martin has now come out with its prospectus which details a float of approximately 56 million shares, or 25 percent of the company, and a share price range of between 17.50 pounds to 22.50 pounds per share. At the upper end of that range, the company would have a market valuation of 5.07 billion pounds, or $6.7b at current exchange rates.
Ferrari, which launched its own IPO in 2015 with a float of 10 percent of the company, was valued at $9.8b at the time of its listing. More recently, Chinese electric car startup Nio launched an IPO that valued the company at $6.41b. Aston Martin hopes to announce its final pricing in early October and expects its shares to be listed on or around Oct. 8.
Some existing Aston Martin shareholders are expected to cash out their investments, though Daimler will continue to own its stake of 4.9 percent. Other key Aston Martin shareholders include Italy’s Investindustrial and Kuwait’s Investment Dar.
Aston Martin is currently in the best financial shape in its 105-year history. The company is on track to deliver between 6,200 and 6,400 vehicles this year and has reported a profit of $54 million for the first six months of the year.
And this is with only the first three of seven models under the Second Century plan currently on sale. Recall, Aston Martin is just a year out from opening a second plant and building higher volume models like an SUV. The company is also on the verge of launching electric cars, the first of which will be the Rapide E due in 2019.