Aston Martin has said it is seeking a valuation of up to GBP5.07bn in its upcoming IPO as it set a price range per share for its London stock market flotation later this year.
In a statement issued this morning the company said: “The price range for the Offer has been set at £17.50 to £22.50 per ordinary share, implying a market capitalisation on admission of between £4.02 billion and £5.07 billion.”
The statement also said that Daimler will remain a shareholder and will not sell-down at IPO, converting its current non-voting stake of approximately 4.9% to shares. It also has agreed to a 12-month lock-up of these shares.
The firm is expecting 25 percent of its stock to be floated, nearly 57 million shares.
Through raising additional capital, the company is aiming to achieve strong growth and enhance Aston Martin Lagonda’s cash flow generation ‘by pursuing a strategy focused on continually renewing its product offerings and expansion in new and existing markets’. The company believes that new products such as the DBX will allow Aston Martin Lagonda to address new markets and diversify, and as a result, increase revenue. It will also re-introduce the historic Lagonda marque, which will be the first all-electric luxury automotive brand. The Lagonda product range will target the SUV and sedan markets, focusing on the ultra-luxury segment.
“By becoming the only automotive company listed on the London Stock Exchange, Aston Martin Lagonda will provide investors with a fitting opportunity to participate in our future success.”
Dr Andy Palmer, President and Group CEO, said: “By becoming the only automotive company listed on the London Stock Exchange, Aston Martin Lagonda will provide investors with a fitting opportunity to participate in our future success.
“Our Second Century Plan gives prospective investors deep insight into how we have executed our turnaround and how we are positioned for growth. Over the past four years the benefits of the Aston Martin turnaround to the UK economy have been profound. We have secured and created thousands of jobs in the West Midlands and South Wales, boosted our investments in manufacturing and engineering and increased our spend with local suppliers.
“This track record has created significant interest in the Aston Martin Lagonda offer, and we are pleased to offer shares not only to institutional investors but also to our eligible UK resident employees, customers and members of the Aston Martin Owners Club.”