Aston Martin IPO values James Bond’s favorite auto brand at $ 5.6 billion
Aston Martin joins the ranks of listed automakers with an IPO that values the UK company at more than $ 5 billion. But his first day of trading in London got off to a rocky start.
The favorite car maker of fictional British Secret Service agent James Bond has valued its shares at £ 19.00 ($ 24.70), giving it a valuation of £ 4.3bn (5.6bn dollars).
The final listing price is 16% below the high-end target Aston Martin is targeting, reflecting investor doubts as to whether the automaker should be valued in the same championship as Italian rival Ferrari.
Shares fell nearly 5% in London trading.
By going public, the UK company is asking investors to overcome fears over US threats to tax foreign automobiles and the potential for Britain’s planned exit from the European Union. to disrupt supply chains and markets.
Aston Martin, which has a history of filing for bankruptcy, is now producing good profits.
He sold over 5,000 cars in 2017, his best performance in nine years. This generated a record turnover of 876 million pounds sterling ($ 1.1 billion), an increase of almost 50% from the previous year.
The results for the first half of this year show that momentum has continued. Revenue was up 8% from the same period a year earlier, while profits were up 14%, according to figures released last month.
Aston Martin has sought in recent years to capitalize on its high-end brand. But Bernstein analysts see several potential problems.
They argue that the Aston Martin brand is not as strong as that of Ferrari (, which is bolstered by decades of racing history and a host of Formula 1 championships. The British manufacturer also has much tighter margins than its Italian rival and a worrying history of patchy sales. )
With the money raised from the IPO going to existing shareholders rather than investment in the company, Aston Martin executives could put too much hope on the success of a planned SUV.
“Given its current financial situation and apparently rather less robust demand, it is difficult for us to see how it can match Ferrari’s profitability,” Bernstein analysts recently wrote. “We can’t see him getting any closer.”
Aston Martin owners include a Mercedes-Benz parent Daimler (, the private equity firm Investindustrial and Kuwait-based investors. )
CNNMoney (London) First published on October 3, 2018: 4:38 a.m. ET