Aston Martin gears up for London listing as sales accelerate

The luxury car maker could be valued at £5bn, putting it at the top of the FTSE 250

Caitlin Morrison@citycait
Wednesday 29 August 2018 07:56
New 007 Car Is Aston Martin s Ninth Appearance in Bond Franchise

Aston Martin has confirmed that it intends to list on the London Stock Exchange, with plans to float at least 25 per cent of the company’s shares.

The brand, synonymous with James Bond, is reported to be seeking a valuation of up to £5bn, which would put it at the top end of the FTSE 250, and just below FTSE 100 firms like Marks & Spencer and Royal Mail.

A prospectus containing the full details of the offer is to be published on or around 20 September, and Deutsche Bank, Goldman Sachs and JP Morgan have been appointed as coordinators of the IPO, while Lazard is acting as financial adviser.

The group made its announcement as it reported an 8 per cent rise in revenue during the first half of the year.

The iconic manufacturer said growth was primarily driven by increased revenue from sales of special edition vehicles, in particular the Vanquish Zagato family and DB4 GT Continuation models as well as revenue from the Aston Martin consulting business.

The luxury car maker’s chief executive Andy Palmer said: “Today’s announcement represents a key milestone in the history of the company, which is reporting strong financial results and increased global demand for its award-winning sports cars.

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

Mr Palmer told Reuters he hoped the flotation would complete by the end of the year, which would coincide with when Britain hopes to have agreed a Brexit deal with the European Union.

Aston Martin sells roughly 25 per cent of its cars to the EU and operates its only plant in Britain, with a second one due to begin operations in 2019.

But Palmer said he did not think even a bad Brexit deal involving tariffs would have a big impact on the firm.

“We can demonstrate that Brexit is not a major effect for us,” he said.

“If there is a tariff into Europe, it’s countered by a tariff into the UK for our competitors so you might lose a little bit of market share in the EU but you pick it up in the UK.”

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “There are few people who wouldn’t want an Aston Martin on their drive, and even fewer who can afford one.

“However this stock market float allows investors to buy into a little of the glamour of Aston Martin, without getting a second mortgage.”

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