Aston Martin priced its initial public offering in London Wednesday valuing the company at £4.33 billion ($5.6 billion), a little below the top end of its target price range.
Chief Executive Andy Palmer said the IPO and listing on the London Stock Exchange was “a historic milestone” for the auto maker, whose cars are best known from the James Bond movies. Shares begin trading under the ticker “ASTM” on Wednesday.
“We are excited about the momentum across the company and are fully focused on continuing to deliver our exciting growth strategy,” Palmer added.
The offer equates to 57 million shares, at 1900p per share. In addition, a further 5.7 million shares are being made available through an over allotment option. Including the over allotment, the offer size rises to £1.19 billion.
Palmer has overseen a significant uptick in sales in the past couple of years. He has previously said the company plans to ramp up production volumes and introduce new models. The company aims to replicate the path of rival Ferrari RACE, -0.15% — the Italian car maker that has expanded quickly since its own IPO in 2015.
Jasper Lawler, head of research at London Capital Group, said in a note to clients that he is cautious about the expansion in production and possible brand damage” over the long term. But he also added that these concerns are “somewhat allayed” by management’s track record and “the iconic status of the century old British motoring brand.”
Lawler added that the luxury car maker could eventually emerge as a challenger to one very well-known U.S. auto name.
“The £2.4 million Valkyrie hybrid model sold out and all Aston Martin models will eventually be available as a hybrid . The combination of a household name with the right investment in technology could one day see Aston Martin challenging Tesla’s TSLA, -3.12% spot as the go to premium EV,” he said.
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