Aston Martin valued at around £5bn ahead of Stock Exchange flotation
Chief executive set to pocket £31.4m as British carmaker prepares to become first of its kind to float on London Stock Exchange since 1980s
Aston Martin Lagonda is set to float on the London Stock Exchange on October 3, with a targeted valuation of around £5 billion.
The company aims to sell shares for between £17.50 and £22.50 when it becomes the first carmaker to float on the London Stock Exchange since the 1980s. This would put its value at somewhere between £4.02 billion and £5.07 billion.
The midpoint of this would value Aston Martin at 22 times last year’s profits before tax and other charges – exceeding that of Ferrari, which trades at 19 times this on the New York Stock Exchange.
Existing investors aim to sell about 25 per cent of the business in shares with the option to sell a further 2.5 per cent, which would allow the company to bank more than £1 billion.
Documents released by Aston Martin show that company president and chief executive Andy Palmer could receive a payout of £31.4 million as well as a 0.6 per cent stake in the manufacturer when it is listed.
It has been confirmed that existing shareholder Daimler, parent company of Mercedes-Benz among other automotive businesses, will convert its current 4.9 per cent non-voting stake to shares.
Palmer 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.”
