Your Chance to Own Aston Martin. Well, At Least a Small Bit of It.
Aston Martin is revving up the London Stock Exchange (LSE) with a much-awaited stock market listing this week, which may turn out to be the largest and certainly most prominent public offering for a number of years.
The news wires are abuzz with reports that Aston Martin, the favourite ride of James Bond, will officially announce that it intends to list on the London Stock Market when it announces its interim results this week.
The maker of luxury sports cars plans to sell about GBP1 billion of share, or about 20% of the company, which will then be openly traded on the LSE. With Brexit looming large on the horizon, many will see this flotation as a test of investor appetite, but Andy Palmer, Aston Martin’s CEO, believes UK leaving the EU is not really a concern for the UK-based company.
Currently, Aston Martin imports about two-thirds of its parts from Europe but Palmer says that the company is used to dealing with tariffs and the company’s fastest growing markets—UK, USA and China—will be unaffected by Brexit. The company has been seeing massive sales growth in China, with an 83% increase, and there are plans to add ten more showrooms there this year.
Aston Martin initially started life in 1913 in a garage in London, and whilst it can most accurately be described as a bit of a boutique manufacturer, the brand is one of the biggest in the world. The plan is to more than double production from 6,000 to 14,000 cars per year; all will be manufactured in the Gaydon factory, which is in the county of Warwickshire, England, and a new facility in Wales.
It was only last year that the company returned to profit, with a pre-tax profit of GBP87 million on a GBP876 million turnover. But according to the company, the average price of a car has increased by 13% this year due to increased customer personalisation.
Just a few weeks ago, the company announced that it would be building 25 of the iconic ‘James Bond’ DB5s, complete with a bunch of the gadgets featured in various Bond films, including revolving number plates, although there was no mention of the ejector seat being an option. These cars will sell for an eye-watering GBP2.75 million each, with one being auctioned for charity and one being retained by the company. And get this, none of them will be street legal, so no posing outside of your local pub. Read about it: James Bond’s Aston Martin DB5 Reincarnated.
If you want to own a part of Aston Martin, best go get a prospectus and then break into the piggy bank.