Reports of Aston Martin launching an initial public offering (IPO) date back as far as the brand’s sale by Ford to a consortium led by Prodrive founder David Richards in 2008. Now it appears that the IPO is close to happening.
The automaker announced Wednesday its intention to potentially launch an IPO on the London Stock Exchange and said a prospectus for the offer will be made available around September 20.
Should all go to plan, a newly-incorporated company would become the parent of Aston Martin, and a minimum of 25 percent of the company would be floated. Some existing Aston Martin shareholders are expected to cash out their investments, though Daimler will continue to own its stake of 4.9 percent. Other key Aston Martin shareholders include Italy's Investindustrial and Kuwait's Investment Dar.
"Today's announcement represents a key milestone in the history of the company, which is reporting strong financial results and increased global demand for its award-winning sports cars,” Aston Martin CEO Andy Palmer said in a statement. “As we continue to execute our Second Century plan, combining a product offensive and expanding manufacturing footprint, we have the resources and balance sheet strength to continue delivering on our growth strategy.”
Some analysts estimate the value of Aston Martin at $7 billion. At its own IPO back in 2015, Ferrari was valued at $9.8 billion. Sure to be watching closely is rival firm McLaren as well as engine builder Cosworth, both of which are considering IPOs of their own.
Aston Martin is currently in its best financial position it's been in during its 105-year history. The company is on track to deliver between 6,200 and 6,400 vehicles this year and has reported a profit of $54 million for the first six months of the year.
And this is with only the first three of seven models under the Second Century plan currently on sale. With more models on sale, Aston Martin estimates that its deliveries will increase to 10,000 units per year by 2020.