British manufacturer's entire share stock now available following initial public offering
8 October 2018

Aston Martin has released its entire share capital onto the London Stock Exchange main market, following its initial floatation on 3 October.

The amount of available shares totals 228,002,890, up from the initial 57,000,723 share offering that represented 25% of the company. An initial offer price of £19 per share valued the British car maker at £4.33bn, although early trading saw that amount drop almost 5% on the first day of trading. It has continued a downward slide, with shares trading at £16.06 at the time of writing.

Based on the initial share price valuation, Aston fell just short of being eligible for inclusion in the FTSE 100 index (for the companies listed on the London Stock exchange with the highest valuation).

The company is now trading on the LSE under the ticker 'AML'. 

Before the flotation, Aston has revealed a guide price of between £17.50 and £22.50 per ordinary share. Eligible Aston Martin employees, customers and owners' club members based in the UK benefit from a specific share offer. Daimler retains its 4.9% share, locked in for 12 months, while Investindustrial's stake will be locked in for 180 days.  

Earlier this year, Aston also published its half-year financial results that show a 14% increase in revenue to just below £450 million, with pre-tax profits rising from £20.1m to £20.8m. At the initial valuation given for the company's shares, it stands a good chance of becoming part of the FTSE 100 as the value increases. 

The British supercar maker is currently owned by Italian and Kuwaiti shareholders, alongside other minority investors. Investindustrial took a 37.5% stake in Aston in 2012, with Daimler also owning a 4.9% share. With interest globally, there was debate about whether the company should float its shares in London or New York.

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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 car maker'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 life cycle before being replaced. 

The most recent financial results show seven consecutive quarters of profitability, with CEO Andy Palmer leading a turnaround that marks an end to a tumultuous period in the brand's 105-year history. Aston spent years losing money, with the threat of bankruptcy recurring several times. Last year, it turned its first profit since 2010. Palmer called the IPO a "key milestone" in Aston's history.

At the time of the IPO, he said: "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 claims that it is on track to produce between 6200 and 6400 cars in 2018, with up to 65% of those being produced in the latter half of the year. 

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

READ MORE

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Comments
10

29 August 2018

I like Aston and wish them the best if luck but to be honest I’m far from convinced that the DBX is the right move and whilst I think their plans for Lagonda are good they are also high risk, which would worry me as an investor. Ultimately I think Aston will be swallowed up by another company and maybe that’s where the value is in these shares.

29 August 2018
TStag wrote:

Ultimately I think Aston will be swallowed up by another company and maybe that’s where the value is in these shares.

 

The investment company bought Aston for £ 500 million and now they belive they can sell the shares for £ 5bn.   Not a bad return!

 

But why now if the DBX is immianent?   Well, I suspect it's because the new V8 Vantage hasn't got the orders they were hoping for.   Nor the new DB11 DBS.   The may just fear that the DBX will be a dud too.

 

Aston have been known for a timeless elegance in their looks.   That's missing from the latest designs.   They are also too fussy, inside and out.   They need a new designer, one  of the calibre of Ian Callum again.   I suspect that won't be easy to find.

 

29 August 2018
Symanski wrote:

TStag wrote:

Ultimately I think Aston will be swallowed up by another company and maybe that’s where the value is in these shares.

 

 

But why now if the DBX is immianent?

 

 

 

Because they need the money to productionise and lunch the DBX

 

20 September 2018
TStag wrote:

high risk, which would worry me as an investor

Exactly. Get past the smoke, mirrors and hype and you find false hope. The reality is that AM is struggling to sell cars. Turnover is miniscule and profit so wafer-thin that any accountant worth their salt could magic-up the numbers in a stroke.

In other industries this would be viewed as a ponsi scheme. Most likely AM will be found out, but probably only after many punters have lost their shirts.

Why doesn't Autocar ask hard questions like how many cars AM sold last month?  And really sold to punters instead of deliveries to dealers. The reality is shocking and people need to know.

29 August 2018

Tata was also rumour to have wanted to float Jaguar Landrover as well last year. An with the Ipace being so well receive, it might only be a matter of time. 

20 September 2018

Aston Martin has a long long history of not making any return for its owners, in fact it is a history of cash burning and substantial loss making... the latest half year results of just £20m pre-tax profit on £450m revenues hardly justifies a valuation of £4b to £5b whatever they promise downstream.

Every sports car maker including Lamborghini and soon Lotus and Ferrari are heading for "SUV Land" to generate the profits required to sustain the R&D and new model investment that sports cars alone cannot self generate.

When the next down cycle shows up from the imminent US-China trade war, the wealthy will imho again start to stash their cash rather than buy another expensive luxury SUV  

Ford US must be crying in their milk... so good luck Aston Martin... "but I am out" 

 

 

3 October 2018
Sooner rather than later, the scales will fall from the world's eyes, and SUVs will go back to where they came from. There is nothing magical, or sexy, about a jacked-up estate car, whatever badge it wears.

When that happens, a lot of business models will collapse.

8 October 2018
eseaton wrote:

Sooner rather than later, the scales will fall from the world's eyes, and SUVs will go back to where they came from. ..... When that happens, a lot of business models will collapse.

Don't you mean 'IF'. SUV's sell because poeple want them especially one's who've experienced owning one before.

typos1 - Just can’t respect opinion

8 October 2018

Not surprised really I think that by comparing Aston to Ferrari they may have shot themselves in the foot.Ferrari are a true Premium product producing thir own engines and having a very significant presence in the very top echolons of motor sport. Aston have been using other makers engines since the introduction of the DB7 with it's Jaguar emgine followed by the Ford based V-12 and now the Mercedes/AMG units currently used. As things stand they have done well to get production levels as high as they have,but the increase in production dilutes the exclusivity of the marque. I'd rather think that if you've an optimistic view the output of 14000 units per annum it's challenging,if you look at it with a more cynical eye you could think it was fantasy,still it'll be interesting to view the company's performance in five years and see what's come to pass

10 October 2018

Crazy comments on this story. Aston isn't about cars any more. It is a brand, and the coolest in the market. Stand a Ferrari one side, a Bentley the other, and people will choose the Aston, because the badge is the least embarassing to be seen driving at the traffic lights.

But they'll also happily wear it on a polo shirt, or on the bows of the yacht they buy, that Aston built, or on the nose of the moon rocket (when Aston starts making those). Stock float was great news, I love looking at the cars as they drive past, and I'm now a shareholder in AML. 

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