Aston Martin Goes Public Next Month, Aims For $6.7 Billion Valuation

Aston Martin hopes to fetch a price tag of $6.7 billion when it goes public next month on the London Stock Exchange.

Last month, the British marque said it was planning on selling roughly 25 per cent of its stock in its initial public offering (IPO).

Speaking to Reuters this week, a bookrunner for the IPO said Aston Martin had already received orders for the stock on sale and said that the bottom end of the price range will value the carmaker at between £4.02 billion and £5.07 billion ($5.33 billion – $6.73 billion).

Aston intends on announcing the final price for its stock on or around October 3 before hitting the London Stock Exchange around October 8.

The car manufacturer is particularly keen to boost its value due to the UK’s departure from the European Union next month. This move is expected to increase manufacturing costs because many of its suppliers are located in the EU. Additionally, it could be struck with a tariff on all vehicles it sells in the EU.

To help counteract this, Aston Martin has been building up a supply of engines and other components while the current free trade deal between the UK and Europe still stands.

“We’re up to five days of engine stock for example and we’ve got a very large warehouse in Wellesbourne (in central England) where we have at least five days of car stock,” chief executive Andy Palmer said, though he remains optimistic about Aston’s sales.

“If there are tariffs… for every car we lose because of a 10 percent tariff into Europe, we presumably pick up from Ferrari and Lamborghini in the other direction because obviously their cars become more expensive in the UK.”

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  • Nordschleife

    Clash it pros and cons to both so I hope this pans out for Aston and taking it public is successful for them. I love Aston (current vehicles included) and want them to succeed.

  • designer_dick

    Ford must be kicking itself. All the companies from their former Premier Automotive Group are now (conservatively) valued at around 10x as much as they were sold for.

    • Well not for cheap though, JLR, Volvo and Aston succeed thanks to the massive investment the parents company made.

      • designer_dick

        Massive investments Ford could and should have made, but didn’t thanks to management incompetence and a clear lack of vision.

        • While PAG was a mess, you had to see all those brands get huge amount of money that clearly 1 company couldn’t afford.

          And without Ford involvement, neither of former PAG brands would look attractive enough so that they can be sold to other company.

          • designer_dick

            Ford’s ‘investment’ in Volvo resulted in them selling the company for less than a third as much as they paid for it.

          • It’s not about whose making a profit in the end, if Ford wants to make a quick buck then they can just dress up the pig and makes it look pretty.

            We talking about the range of models that Volvo launched during their PAG periods, these cars were the foundation that led to modern Geely era Volvo.

          • designer_dick

            You can spin it any way you like, the fact remains that Ford lost $4.2bn when it came time for them to sell Volvo.

  • Honda NSX-R

    Mmmmm dat ass

  • liams92

    Firstly, the UK is not leaving the European Union next month. Also worth noting that even if the UK is left with a no-deal situation and is forced to trade on WTO terms, you pay ZERO tariffs on components, only the final product so the notion of supply lines being an issue is pure fabrication. If this were true there wouldn’t be so many chinese, Indian and American parts in British cars because we currently trade with those nations on WTO.

  • Philip George

    He has miscalculated badly. Ferrari and Lamborghini all have their suppliers in Europe and can therefore absorb the tariff hit of selling into the UK by finding costs efficiencies within their supply chain. Aston relies on suppliers all based in EU (outside UK) and would have a markup in price to tariffs on parts before actual assembly of the cars begin., not to mention the forecasted increase in the cost of labour and other means of doing business. They know this and it is why they’re in a hurry to float stock before March 29 Brexit doomsday. After that day, their stock price will tank/crash.

  • I wish them succeed and Palmer Next Century Plan is brilliant.

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