News ID: 231636
Published: 0202 GMT September 20, 2018

Aston Martin races ahead with up to $6.7 billion flotation

Aston Martin races ahead with up to $6.7 billion flotation

Luxury British carmaker Aston Martin is seeking a valuation of up to 5.07 billion pounds ($6.7 billion) from its stock market flotation next month and said it is prepared for any outcome from the Brexit talks.

The company, famed for making the sports car driven by fictional secret agent James Bond, said last month it was pursuing an initial public offering (IPO), the first British carmaker to do so for decades, reported.

The automaker will publish a prospectus later on Thursday and hopes to announce its final pricing on or around Oct. 3.

It expects its shares to be admitted to the London Stock Exchange on or around Oct. 8 although some analysts have raised questions about the valuation the firm is aiming for.

Carmakers have warned about the impact of any customs checks introduced as a result of a no deal or hard Brexit which could slow down production and add costs when Britain leaves the bloc in March 2019.

The boss of Aston, which builds all its cars in Britain, said the company had boosted its stock of engines and components in case free and unfettered trade with the European Union ends in a few months’ time.

London and Brussels hope to conclude a Brexit agreement by the end of the year but fellow carmakers such as BMW  and Jaguar Land Rover (JLR) are worried that failure to agree could lead to snarl-ups at motorways and ports disrupting production.

JLR boss Ralf Speth warned last week that the wrong Brexit deal could cost tens of thousands of car jobs and risk production at the firm, Britain’s biggest carmaker.

Aston, which has set a price range of 17.50 pounds to 22.50 pounds per share for the 25 percent of stock it is floating, is targeting a market capitalization of between 4.02 and 5.07 billion pounds.

The carmaker, which has long said it could pursue a listing, has undergone a turnaround plan since Palmer took over in 2014 as it boosts its volumes and expands into new segments with a new factory due to open in 2019.

Aston sees Ferrari, which made its Wall Street debut in 2015 amid strong investor demand, as a model to follow, raising some scepticism.

Security Key:
Captcha refresh
Page Generated in 0/3159 sec