IPO could value sports car maker at almost $9 billion

 

Sports car maker Aston Martin plans to list itself on the London Stock Exchange by the end of the year.

Aston Martin has confirmed to Reuters and other news outlets it's filed the necessary registration documents with the UK Financial Conduct Authority. Should everything be given the green light, the company plans on publishing its prospectus around September 20.

The company reportedly plans on floating 25 per cent of itself on the London Stock Exchange, with current investors selling down their stakes. Employees and customers will be given the opportunity to buy into the luxury sports car maker.

Sources told the newswire the IPO could value the company at around £5 billion ($8.9 billion).

Last year Aston Martin made its first full-year profit since 2010. It has just announced it made a pre-tax profit £42 million ($75 million) on revenue of £445 million ($793 million) during the first half of this year.

Driven by strong demand for the DB11 range, Aston Martin expects to make between 6200 and 6400 cars this year. It is currently building a second factory in Wales to produce its first ever crossover, the DBX, which should boost sales to beyond 10,000 per annnum.

Andy Palmer, Aston Martin's CEO, told Reuters the timing of the float will coincide with the anticipated release of the final Brexit deal between the UK and the European Union.

Palmer believes even a poor Brexit deal or a hard Brexit scenario, where no deal is secured, will not have a "major effect" for Aston Martin. He reasons "if there is a tariff into Europe, it's countered by a tariff into the UK for our competitors, so you might lose a little bit of market share in the EU but you pick it up in the UK".

Roughly a quarter of Aston Martin's current output is sold in the EU.