LONDON (Reuters) – Luxury car maker Aston Martin plans to go public and make a turnaround on the London Stock Exchange after new models and an increase in iconic brand volume have returned to profit after years of losses.
FILE PHOTO: A company logo is seen on the new Aston Martin Vantage vehicle at a media event in Gaydon, UK, on November 20, 201
If it were successful, it would be the first British. Listed for years in London, after the sale of names such as Jaguar, Bentley and Rolls-Royce to foreign owners.
The IPO, which will follow in the footsteps of Ferrari, could estimate the company to up to 5 billion pounds (6.38 billion dollars), sources said earlier at Reuters.
Aston Martin said it was filed a registration document with the British Financial Conduct Authority, which is a requirement of companies considering an IPO. Pending a final decision, a prospectus will be published on or about September 20.
The boss of the car maker, Andy Palmer, told Reuters he hopes the IPO will be completed by the end of the year, a Brexit agreement with the European Union.
Aston Martin sells approximately 25 percent of its cars to the EU and operates its sole UK facility, with a second scheduled to go on stream in 2019.
But Palmer said he did not even believe in a bad Brexit deal with tariffs would have a big impact on the company.
"We can show that Brexit has no big impact on us," he told Reuters.
"If there is a tariff to Europe, this will be countered by one inch to the UK for our competitors, so you could lose some market share in the EU, but you pick it up in the UK," he said.
The plan envisages a secondary sale of existing shareholders, mainly Kuwaiti and Italian private equity groups, with a free float of at least 25 percent.
The Company intends to apply for premium listing on the London Stock Exchange with employees and clients who can buy shares.
Aston, which has been losing money for years, posted its first profit since 2010 and an adjusted pre-tax profit of 42 million pounds on Wednesday, as sales rose 8 percent to 445 million pounds due to strong demand Volante models.
The company, which is based in Central England, expects sales of between 6,200 and 6,400 units for the full year. In the medium term, nearly 10,000 new vehicles will be built in the 2020 calendar year.
Coverage by Costas Pitas; Edited by Kate Holton