Aston Martin looks to drive away from IPO with £5bn valuation
By Iain Gilbert
Date: Wednesday 29 Aug 2018
(Sharecast News) - Aston Martin may soon float on the London Stock Exchange with an expected value that could put the British automotive legend at the top end of the FTSE 250.
The UK automaker, synonymous with the James Bond films, could potentially be valued at between £4bn and £5bn, putting it ahead of firm's like Travis Perkins and William Hill, and right behind the likes of FTSE 100 stalwarts M&S and Royal Mail.
Aston Martin was set to publish a prospectus containing the full details of its offer on or around 20 September.
But ahead of that, and its final decision on whether or not to proceed with a float, it announced that it had appointed Deutsche Bank, Goldman Sachs and JP Morgan as possible coordinators for the IPO, with Lazard acting as financial adviser.
However, Hargreaves Lansdown's Laith Khalaf noted that it was important for potential investors to concentrate on the company's financial prospects and not get "carried away by the brand".
Khalaf 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."
While Khalaf said Hargreaves was "disappointed" there wasn't a retail offering within Aston Martin's IPO, the analyst said that private investors will at least be able to buy shares on the secondary market when they start to trade.
The manufacturer published its first half figures alongside the announcement regarding its flotation. It posted an 8% rise in revenue fpr the first six months of its trading year, principally driven by increased sales of the Vanquish Zagato and DB4 GT Continuation models.
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."
Since floating under the ticker RACE back in 2015, Italian rival Ferrari has since seen its price more than double.
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