Investindustrial-backed Aston Martin prices £4.3bn IPO

Kenny Wastell
03 October 2018

Tweet
Facebook
LinkedIn
Google plus
Send to

Investindustrial-backed luxury car-maker Aston Martin Lagonda has priced its IPO on the London Stock Exchange, giving it a market cap of ТЃ4.33bn.

The flotation values shares in the business at £19 apiece, towards the lower end of the £17.50-22.50 price range announced in September.

The offer comprises 57,000,723 existing shares owned by Investindustrial, Adeem Investments, Primewagon and senior management – equivalent to a 25% stake in the business – and an over-allotment option of up to 5,700,072 or 2.5%.

While the business expects to be eligible for inclusion in the FTSE indices, it is likely to miss out on inclusion in the FTSE 100 based on the current values of the index's constituents.

Since Investinudstrial's initial investment, Aston Martin has pursued international expansion – opening multiple showrooms in Asia and Australia – restructured its marketing team and launched an online store. It is also in the process of developing a new car assembly plant at St Athan, South Wales, a new test and development centre at the Silverstone race track in England, and a new office in London.

According to a recent statement issued by the business, Daimler will remain a shareholder in Aston Martin following the IPO.

Deutsche Bank, Goldman Sachs International and JP Morgan are acting as joint global coordinators in the listing, while Lazard is acting as financial adviser to Aston Martin.

Previous funding
Prior to the listing, Aston Martin was jointly owned by Investindustrial and Kuwaiti investment house The Investment Dar, with the GP initially investing €190m for a 37.5% stake in the company in 2012. Investindustrial then took part in a £200m growth capital investment in the business alongside investment bank Tejara Capital in 2015.

Company
Aston Martin was founded in 1913 and is headquartered in Gaydon, Warwickshire. It generated a £445m turnover in H1 2018 and adjusted EBITDA of £106m, up 8% and 14% respectively on the same period in 2017, according to its half-year results. It expects to generate an adjusted EBITDA margin of 23% in 2018.

People
Investindustrial – Andrea Bonomi (founder, managing principal).
Aston Martin Lagonda – Andy Palmer (president, CEO).