Monday 21 October 2019

Aston Martin narrows IPO range as it revs up for listing

The new range gives Aston Martin an expected valuation of £4.2 billion to £4.5 billion.

Aston Martin is gearing up to float (PA)
Aston Martin is gearing up to float (PA)

By Ravender Sembhy, Press Association City Editor

Aston Martin has cut the top end of its stock market listing price range, meaning the carmaker looks set to be kept out of the FTSE 100.

The firm has narrowed the range of its initial public offering from between £17.50 and £22.50 per share to between £18.50 and £20 per share.

The new range gives Aston Martin an expected valuation of £4.2 billion to £4.5 billion, down from its previously expected valuation of between £4.5 billion and £5.1 billion.

If the values of the current FTSE 100 constituents remain broadly the same until the next reshuffle in December, the James Bond carmaker would miss out on a place in the blue chip index.

The company expects to confirm the final pricing of the offer on Wednesday, when dealings will start on the London Stock Exchange. Admission of the shares to trading is expected on October 8.

Aston Martin will float around 25% of the business and those selling down their stakes include Investindustrial, Adeem Investments, Primewagon and senior management.

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.

In the first half of the year, Aston Martin reported a pre-tax profit of £20.8 million on revenue of £449.9 million. Operating profits rose 14% to £106 million.

PA Media

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