Aston Martin London Stock Exchange flotation confirmed

Aston Martin is set to list shares for sale on the stock exchange in the coming weeks, as financial results show record profits

After rumours began circling last year, Aston Martin has confirmed it intends to float the company on the London Stock Exchange within the next few weeks, following record profits.

The formal launch of the firm’s initial public offering (IPO) will see up to £1bn of shares in Aston offered for sale. The firm has today submitted a Registration Document with the British Financial Conduct Authority, with a prospectus due to be published on or around September 20.  

Aston Martin also published its half-year financial results, showing a 14% rise in revenue to just under £450m, with pre-tax profits rising from £20.1m to £20.8m. The initial public offering is expected to see the company valued at up to £5bn, with 25% of its shares offered in the listing. It could be listed on the FTSE 100 if the value is high enough. 

The British supercar maker is currently owned by Italian and Kuwaiti shareholders, with other minority investors. Investindustrial took a 37.5% stake in Aston Martin in 2012, with Daimler also owning a 5% share.  With interest globally, there was debate about whether the company should float its shares in London or New York.

The decision to float Aston has been long been mooted as sales continue to grow, with new products such as the DB11 and Vantage ensuring the company’s financial outlook is strong. 

There is more to come, with the Gaydon-based carmaker’s Second Century plan seeing one new ‘core’ model launched every year until 2022 – such as the DBX SUV and an all-new Lagonda saloon. Each model will have a seven-year lifecycle before being replaced. 

The financial results published today show seven consecutive quarters of profitability, with CEO Andy Palmer ensuring the turnaround marks an end to a tumultuous time in the brand’s 105-year history. The company spent years losing money, with the threat of bankrupcy recurring several times. Last year it turned its first profit since 2010. Palmer called the IPO intention a “key milestone” in Aston’s history.

“Today’s results show that we have continued to deliver sustainable growth, margins and value for our shareholders whilst launching three new models and variants in the first half of the year.”

Aston Martin claims it is on track to produce between 6200 and 6400 cars in 2018, with up to 65% of those volumes being produced in the latter half of the year. 

Rival carmaker Ferrari had great success with its stock market flotation in 2015, doubling the company’s value to around £15bn in little under a year. McLaren has also considered a stock market entry in a bid to further boost investment. 

Source: Autocar Online

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