Aston Martin prices IPO at $5.6 billion, sputters in debut

Aston Martin prices IPO at $5.6 billion, sputters in debut”

Because Aston Martin has revealed its stock market flotation price and it's big.

The deadline for orders is 1100 GMT.

Luxury British sports auto manufacturer Aston Martin will float on the London stock market Wednesday with a valuation of £4.33 billion.

The listing has seen investors Investindustrial, Adeem Investments, Primewagon and senior management bank more than £1 billion between them with the firm floating 25% on the London Stock Exchange.

Shares in Aston Martin fell as much as 6.5 percent during its market debut in London on Wednesday after investors and analysts raised concerns that it may find it hard to deliver on an ambitious rollout of new models.

Aston Martin's IPO valuation was 20.7 times first-half earnings, according to Bloomberg data, close to the current share multiple of 21 times expected 2018 profit for Ferrari, which also has a stronger balance sheet.

"We've taken 105 years to get to an IPO, we are not going to worry much on what the initial shares are doing as we will always look over the longer term", Chief Executive Officer Andy Palmer said in an interview with Bloomberg TV.

The decision to float Aston has been always been mooted as sales continue to grow, with new products such as the DB11 and Vantage ensuring the company's financial outlook is strong. It is the same income in green in 2017 for the first time since 2010.

The British supercar maker is now owned by Italian and Kuwaiti shareholders, alongside other minority investors.

"We are delighted by the positive response we have received from investors across the world", Aston Martin CEO Andy Palmer said in a statement.

An IPO at 19 pounds would value the British marque, made famous for its inclusion in the James Bond series of spy films, at 4.31 billion pounds, about 15 per cent less than its initial maximum target.

By listing, Aston Martin has set itself apart from luxury rivals like Jaguar, Bentley, and Rolls-Royce- all sold to foreign owners over recent years.

Aston Martin has detailed an aggressive plan to double sales over the next three years.

Germany's Daimler AG meanwhile will not sell down its Aston Martin holding as part of the IPO, and will instead convert its non-voting 4.9-per-cent stake to shares.

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