It has been revealed that the luxury car brand Aston Martin, will be floated on the London Stock Exchange.
This is a deal that could give the famous car maker a value of around £5 billion. The announcement stated that approximately £1 billion in shares would be sold initially, and the company’s management have described this as one of the most significant milestones in the history of the brand.
Most people are not aware that Aston Martin, best known as James Bond’s car of choice, was actually founded back in 1913, and its first home was a small workshop in London. There was some discussion over whether it would float in London, or choose New York instead. Those who are interested will be able to find out more from the planned prospectus, which is due to be published shortly. The share sale will take place on 20 September.
Aston Martin and Brexit
The good news for existing customers of the brand and some employees is that they will have the opportunity to purchase shares at the offer price. Industry experts consider that this particular flotation will be a test of the market, and will show if investors are inclined to put their money into British companies. There are not many large Initial Public Offerings (IPO) due to take place before Brexit hits next year.
However, Brexit does not appear to be a concern for Aston Martin. One of the reasons for this is that there are not many cars from the brand sold in mainland Europe, and its other export markets attract tariffs anyway.
The brand has plans to increase car production up to 14,000 vehicles, and currently, the primary markets for the brand are the UK, the US and China. Aston Martin has also announced that it is going to open 10 new showrooms in China shortly.