Aston Martin shares fall on stock market debut

Daniel Fowler
October 5, 2018

Shares in the company become available to individual investors on Monday, but the first day of conditional trading posed more questions about whether you should be looking to buy or should leave well alone.

Now, shares of the British carmaker have been listed on the London stock exchange at £19 per share, valuing the company at £4.33 billion.

Aston Martin cut the top end of its initial public offering price range earlier this week, meaning the company looks set to be kept out of the FTSE 100.

Aston Martin's IPO valuation was 20.7 times first-half earnings, according to Bloomberg data, close to the current share multiple of 21 times expected 2018 profit for Ferrari, which also has a stronger balance sheet.

The listing will see investors Investindustrial, Adeem Investments, Primewagon and senior management bank more than £1 billion between them as the firm floats 25% on the London Stock Exchange.

Chief executive Andy Palmer said: "Today's listing on the London Stock Exchange represents a historic milestone for Aston Martin Lagonda".

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The company, which a year ago made its first profit since 2010 and has gone bankrupt seven times in its history, was due to begin conditional trading on the London Stock Exchange today. In August, it was revealed that the company had a 14% increase in revenue in a single half-year, bringing total revenue up to just short of £450 million.

The British manufacturer, now known as Aston Martin Lagonda Global Holdings Plc, is planning to expand its presence in the sports-car world with the Vanquish, Vantage and DB models.

Eligible Aston Martin employees, customers and owners' club members based in the United Kingdom will benefit from a specific share offer.

It is the first United Kingdom carmaker to sell shares in years and has a glamorous association with James Bond films. Under current figures, it could soon be heading towards the FTSE 100, the LSE's share index of the 100 biggest companies trading.

The hotly-anticipated move is the largest IPO in the global automotive sector since Italian luxury auto giant Ferrari listed on Wall Street three years ago. Daimler, which owns Mercedes-Benz, was said to be keeping a 4.9 percent stake in Aston Martin following the IPO.

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