Aston Martin targets £5 billion valuation with London IPO

Luxury carmaker Aston Martin is aiming for a £5 billion valuation when its shares begin trading on the London Stock Exchange next month.

Aston Martin, best known for being James Bond’s vehicle of choice, has set a price range for its London listing of between £17.50 and £22.50 per ordinary share.

It means the carmaker will have a market capitalisation of between £4.02 billion and £5.07 billion.

Final pricing of the IPO is expected to be announced on or around October 3, when shares are set to start conditional trading on the London Stock Exchange.

Unconditional trading will begin around October 8.

Aston Martin confirmed it was offering to float around 57 million shares, representing 25% of the business.

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

It said Daimler AG of Germany will remain a stakeholder and will not sell down its holding at the IPO. The company will instead convert its current non-voting stake of 4.9% to shares.

The IPO is being targeted at institutional investors as well as Aston Martin employees, customers and its Owners Club members in the UK.

Aston Martin’s president and group chief executive Andy 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.”

He said the company’s turnaround over the last four years has had a “profound” effect on the UK economy, having invested in manufacturing and engineering and creating thousands of jobs in the West Midlands and South Wales.

New James Bond film Spectre
New James Bond film Spectre

“This track record has created significant interest in the Aston Martin Lagonda offer, and we are pleased 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,” Mr Palmer added.

Aston Martin last month confirmed it was exploring plans to float on the London Stock Exchange, ending long-standing speculation about its plans to go public.

It later appointed former Royal Bank of Scotland director Penny Hughes as its new chairman, with plans for her to join the board after the carmaker’s IPO.

The company also announced a raft of new directorships to be held by the likes of former InterContinental Hotels Group chief executive Richard Solomons, and former William Hill and Mothercare board member Imelda Walsh.

The carmaker was founded in London in 1913, and is headquartered in Gaydon.

The company has additional facilities in Wellesbourne, where it also produces its special edition models, as well as Newport Pagnell, where its heritage models are manufactured.

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