Aston Martin's IPO values luxury automaker at $5.6bn

The listing marks the first initial public offering of a UK carmaker in more than three decades, since Jaguar Land Rover
Aston Martin's IPO values luxury automaker at $5.6bn
The IPO values the British marque, made famous for its inclusion in the James Bond series of spy films, at 4.3 billion pounds, about 15 percent less than its initial maximum target.
By Bloomberg
Wed 03 Oct 2018 10:46 AM

Aston Martin priced its U.K. initial public offering at 19 pounds ($24.66) a share, toward the bottom of a marketed range that it had already narrowed.

The price was announced Wednesday morning in London after Bloomberg News reported the valuation earlier.

The luxury carmaker pared back its IPO ambitions this week, narrowing the targeted range and reducing the top end by about 11 percent. The reduced range was 18.50 to 20 pounds per share, according to an emailed term sheet.

The IPO values the British marque, made famous for its inclusion in the James Bond series of spy films, at $5.6 billion (4.3bn pounds), about 15 percent less than its initial maximum target. That’s about 20.7 times the company’s first-half profit, according to data compiled by Bloomberg.

Rival Ferrari NV, maker of the $1.8 million Monza supercar, trades at about 21 times expected adjusted profit for 2018, the data show -- a figure that’s more in line with luxury good companies than other automakers.

Gaydon, England-based Aston Martin, which is less profitable and carries a weaker balance sheet than its Italian peer, is attempting to build up its presence in the sports car world with its Vanquish, Vantage and DB models, while reincarnating the Lagonda name to break into the segment currently shared by British rivals Rolls-Royce Motors and Bentley.

The listing marks the first initial public offering of a UK carmaker in more than three decades, since Jaguar Land Rover was spun into an independent company under Margaret Thatcher’s government in 1984.

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