Journal: Aston Martin Is Planning To Go Public

Aston Martin Is Planning To Go Public

By Alex Sobran
August 31, 2018
5 comments

Images courtesy of Aston Martin

While Tesla works on reigning in its boss’s tweets in the aftermath of the will they or won’t they go private episode, another manufacturer is working on the opposite move, and they seem to have their ducks all lined up and ready. Aston Martin recently announced plans for an IPO, (they would float on the London Stock Exchange with an initial valuation of roughly $6.4B), which would make the company one of the first British automakers to achieve the feat in some time—Lotus is owned by a Chinese company, Jaguar by an Indian one, and Bentley and Rolls are both in the hands of the Germans.

Speaking of Germans, AMG supplies engines to Aston as of late (starting with the V8s in the DB11, which they apparently tuned to sound “more like an Aston Martin”), and since they recently bought some stake in the British company many are curious about their response to the IPO should it come to fruition. Partnership in peril? Probably not, but with the all-but-guaranteed increase in tariffs and other import costs that come with leaving the EU (Brexit), it will be interesting to see what Mercedes-AMG’s reaction will be considering they recently increased their stake in Aston in conjunction with the powertrain partnership.

Timing-wise, it looks both appropriate and a little ambitious for Aston to go public. Last year was the first profitable one since 2010 for the British luxury brand (they aren’t only into cars anymore, if the personal aircraft concepts and existing branded luxury apartments are any indicator), so financially things look to be moving in the right general direction and it could be a good time to capitalize on the recent success with a strong initial sale price, but it might be hard to find stakeholder support for some of their more “out there” concepts like the Triton-Aston personal submersible when you need to answer to Joe Car-Guy and his shares of common stock.

Then again, it’s not like the major holders won’t be funds and other companies, so perhaps we could see an increased frequency of collaborations between the Bond car manufacturer and other luxury brands. What do you think about this move? Is it a wise decision for a storied brand that’s been on the brink a few times? Will this give them a stronger footing and more security in the future, or does this lead us down the path toward the lowest common denominator wherein it’s all crossovers and SUVs on the horizon? Maybe they should just issue some bonds…

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Abdul Alim
Abdul Alim(@abdul_alim)
2 years ago

Aston Martin’s offers were promptly downgraded to a “sell” by one City firm, which cautioned that financial specialists in the Warwickshire-based carmaker confronted a money call from the organization. “We can see a situation where Aston Martin may need to come back to financial specialists for progressively cash-flow to finance the business,” said James Congdon of Canaccord Genuity.
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Adweb Consultancy
Adweb Consultancy(@adweb_consultancy)
2 years ago

it may be elusive partner support for a portion of their increasingly “out there” ideas like the Triton-Aston individual submersible when you have to reply to Joe Car-Guy and his portions of basic stock.
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Get Classed(@get_classed)
2 years ago

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Gareth
Gareth
3 years ago

An IPO might raise some cash but it will add unmanageable bureaucracy. The final nail in the coffin and a desperate attempt to recreate the JB DB 5 to raise cash. Here’s what I think:

Franz Kafka
Franz Kafka
3 years ago

Fact check time Alex ;

According to all the automotive business and business news across the globe : assuming the IPO actually happens )

1) AMG Mercedes will maintain their shares in Aston Martin

2) As will major shareholder Investindustrial

3) The IPO is to raise additional funds in order to keep AM afloat , not take shares away from current shareholders

4) To date AM has never so much as seen a hint of profit after the P&L’s have been tallied therefore the claim they did either in 2010 or today is blatantly false

5) Aston Martin’s leadership in a fit of delusion ( or marketing hype ) has convinced itself that BREXIT will have no effect on AM sales whereas in reality all the financial pundits are saying the opposite and that in fact dire consequences may well ensue

So what does anyone with a modicum of business sense and ” Eyes Wide Open ” when it comes to Aston’s ill thought out move to go public ( especially when the likes of Musk are exposing the vile consequences and limitations of doing so ) in light of what can only be described as a world on the brink both financially and politically ?

Stupidity exemplified . Either that or to put it bluntly outright desperation .

Finally . The Aston Martin DBX SUV is already in the pipeline for production in 2020 along with a whole host of other Mercedes based SUV’s planned for the future . Thus be the future of all luxury auto makers including Ferrari .