Aston Martin announces intention to float on the London stock exchange

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Aston Martin DB11

Luxury car maker Aston Martin has announced its intention to float on the London Stock Exchange for £5bn.

The expected value of the company could put it near the top end of the FTSE 250.

The launch of Aston Martin’s initial public offering (IPO) will reportedly involve the sale of approximately £1bn of shares, which will mostly be from existing investors.

In 2015, Ferrari floated and has since seen its price more than double.

Analysis: Laith Khalaf, Senior Analyst, Hargreaves Lansdown

While we’re disappointed there isn’t a retail offering within this IPO, private investors will at least be able to buy shares on the secondary market when they start to trade.

There are few people who wouldn’t want an Aston Martin on their drive, and even fewer who can afford one. However this stock market float allows investors to buy into a little of the glamour of Aston Martin, without getting a second mortgage.

It’s important for potential investors to concentrate on the company’s financial prospects and not to get carried away by the brand however, and that means having a thorough read of the forthcoming prospectus.

Aston Martin could be valued at between £4bn and £5bn, which would put it at the top end of the FTSE 250 ahead of companies like Travis Perkins and William Hill, and nipping at the heels of FTSE 100 stalwarts like M&S and Royal Mail.

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