The Strategist

Aston Martin may start to prepare for an IPO in 2018

05/19/2017 - 14:43

Aston Martin may begin preparations for an IPO in 2018, reports Bloomberg referring to informed sources. According to one of them, the company is summing up results for 2017 before choosing consultants to start the procedure of primary placement. The listing can be held in London.

Cedric Ramirez via flickr
Cedric Ramirez via flickr
The sources specify that the final decision has not yet been taken, and the company may delay implementation of this plan.

Given results of Ferrari’s placement in 2015 (currently its shares are traded with P/E 14, and they have risen in price by 62% since the market debut), then the cost of Aston Martin can reach up to $ 3 billion.

Messages on the possibility of Aston Martin’s IPO has been appearing at least since 2011.

According to a representative of Aston Martin, the company's management is fully focused on implementation of a seven-year business plan. He stressed that all issues related to the company's future will be decided by the shareholders.

Aston Martin is controlled by Italian investment firm Investindustrial, which bought a 37.5-percent stake in the company in 2012. Kuwait's Dar and Adeem Investment are also major shareholders. Investindustrial said that they "are not working on an IPO."

Head of the British brand Andy Palmer said earlier that Aston Martin plans to become "an equivalent of Hermes fashion house in the automotive world."

"It is very important that we are considered as a manufacturer of luxury products in the future. We intend to position ourselves as the car equivalent of Hermes, not as an analogue of Ferrari", Palmer said.

According to Aston Martin’s Head, the company should increase its attractiveness for rich people all over the world, so that it is no longer perceived as a manufacturer of sports cars.

To increase the company’s sales level, it is necessary to expand its model range to attract new customers, for example, in China, where wealthy drivers prefer luxury sedans and all-terrain vehicles. At the same time, Palmer stressed that sports cars will remain the most important part of the brand.

By 2020, the British will release their first production crossover, a prototype of which was shown in the spring of 2015 at the Geneva Motor Show. The company hopes that the all-terrain vehicle will attract new customers, including women.

A few years after the crossover’s advent, Aston Martin is going to revive the "super-luxurious" brand Lagonda, which, according to the idea, should "entice" a part of customers of Rolls-Royce and Bentley brands.

"For more than a hundred years of its existence, Aston Martin has become a fantastic brand. This, however, cannot be said about the company's business. We have had a lot of owners who, as a rule, did not look into the future", - summed up Palmer.