Aston Martin, the maker of sports cars ridden by James Bond in the movies from "Goldfinger" to "Skyfall," announced on Aug. 29 that it may sell at least 25 percent of shares in initial public offering on the London Stock Exchange. This move may catapult the British company to a valuation of $6.4 billion according to preliminary and unofficial estimates.
Details about Aston Martin's decision to go public will be published and made official by Sept. 20, the company said. The IPO announcement from the British manufacturer of luxury sports cars followed its report of first-half pre-tax profits that swell to $26.8 million from $26.4 million within the same period in 2017.
Big players from the bank industry are reportedly arranging the sale which is being dubbed as London's largest for 2018. Top equity advisers from Deutsche Bank, Goldman Sachs, and JP Morgan have already been deployed as joint global co-coordinators for the deal according to Financial News. The Bank of America Merrill Lynch, HSBC, UniCredit, and Credit Suisse are working as bookrunners while Houlihan Lokey, CI Capital, Mediobanca, and Numis Securities are working as co-lead managers. Independent investment bank Lazard, meanwhile, is offering Aston Martin financial advice.
Aston Martin is looking forward to achieving its flotation to the London Stock Market this year which Reuters noted coincided to British Prime Minister Theresa May's target of officially leaving the European Union. If everything goes according to plan, shareholders may likely cash out about 10-for return before Brexit officially takes effect.
Twenty-five percent of Aston Martin's demand is coming from the EU. It also operates its plant in Gaydon which is located in Central England. The second plant is set to begin operation in Wales by 2019. It also imports car parts from the EU, with major supplies coming from Germany. If Brexit proved to be a disaster than advantage from Britain, the supply chain would suffer delays while consumers may face a price hike.
Chief Executive for Aston Martin Andy Palmer said Brexit has got nothing to do with its decision to go public. The company is also treating tariffs as minor hiccups, with Palmer explaining that their competitors may also be faced with tariffs when selling to the United Kingdom. This would mean that U.K. consumers might as well prefer buying from the company than face price hikes buying from the competitors. So, any tariffs Aston Martin faced selling outside of United Kingdom will just compensate the market gained within Britain.
Mark Wilson, chief financial officer, described Brexit to Bloomberg as merely a speed hump in the road. He highlighted that Aston Martin has 105 years of experience and the company has witnessed worse market challenges in the past.
The company is seemingly following the lead of its Italian rival Ferrari which floated to New York Stock Exchange in 2015. Likewise, Aston Martin is trying the market for yachts, apartments, and a store in London's Mayfair where it sells baby strollers and other high-class merchandise.
