Aston Martin Files for IPO

Aston Martin Holdings Ltd. has filed documentation with the U.K.'s Financial Conduct Authority with the intent of tendering an initial public stock offering by year-end.

The carmaker plans to apply for a premium listing on the London Stock Exchange. A prospectus is expected to be published within a month.

Reports from earlier this year valued an Aston Martin IPO at about £5 billion ($6.4 billion).

Reuters says the IPO likely will include a secondary sell-down by existing shareholders, with a free float of at least 25%. Aston Martin’s controlling shareholders include Kuwaiti and Italian private equity groups led by Investment Dar and Adeem Investment and Investindustrial Advisors.

CEO Andy Palmer notes that the timing of the IPO will coincide with when Britain aims to have agreed on a Brexit deal with the European Union. But he doesn’t expect Britain’s exit—even if it results in tariffs—to have much of an impact on Aston Martin.  

Palmer tells Reuters that tariffs on Aston Martin cars shipped to the EU would be offset by tariffs into the U.K. for competitors, which could allow the British carmaker to gain market share in its home market. Aston Martin currently derives about one-fourth of its sales from the EU.

As part of the IPO filing, Aston Martin announced that the company’s sales grew 8% through the first six months of 2018 to £445 million, with pre-tax profits rising 14% to £106 million. The increase was attributed in part to strong sales for special-edition models such as the Vanquish Zagato and DB4 GT. 

The company expects to produce as many as 7,300 cars next year and 9,800 in 2020. This compares with estimated sales of about 6,300 units this year.