Aston-Martin-London-IPO
Aston Martin’s Private Equity Owners Prepare For £2.3bn IPO In 2018
Industry News
Aston Martin is considering ‘floating’ on the stock market in a bid to raise £2.3 billion GBP. The 100 year old company is currently owned by private venture capital, ‘floating’ on the London Stock exchange is the conclusion of a business plan set in motion when Aston was off-loaded by Ford in 2007 and purchased by a consortium of Middle East and Italian private equity investors. The public offering could be made as early as 2018. Aston Martin has an annual turnover of £600m GBP with an annual operating income of £16m GBP for 2017. The company will wait until 2017 financials have been analysed before making a final decision. Aston Martin is currently embarking on a seven year product plan that will see the formation of a new production facility in Wales which will become the home for the DBX SUV. Plans to offer an IPO were set in motion as early a 2011, current CEO Andy Palmer wants to expand Aston Martin beyond selling cars and into selling luxury yachts and apartments. Aston Martin hopes to get a similar bounce Ferrari experienced with their IPO, however Aston Martin manufactures under 2k cars per year where as Ferrari manufactures over 6k per year. That means Ferrari is substantially more profitable and also has a significantly more defined marketing profile. It also means there is continual demand for Ferrari which never ebbs and constantly flows. As to be expected the all new DB11 has boosted Aston Martin’s coffers and with more models in the pipeline Aston Martin expect this trend to continue.  Aston-Martin-London-IPO
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