Aston Martin eyes $8.4B IPO
Preliminary talks indicate targeted valuation would put carmaker on par with Ferrari
MILAN— Aston Martin is targeting a valuation of as much as £5 billion ($8.4 billion) in a potential initial public offering of the British sports carmaker, according to people familiar with the matter.
The manufacturer has held preliminary talks with advisers about a valuation including debt that would put it on par with Ferrari NV, said the informants, who asked not to be named discussing private deliberations. Investors’ interest in an IPO this year could be bolstered by the planned expansion into the lucrative sport-utility vehicle (SUV) segment starting in 2019, the people said.
An Aston Martin share sale in London later this year would cement the iconic brand’s comeback and mark a significant test of investor appetite for English companies ahead of the U.K.’s March 2019 break with the European Union.
The company, famous for its connection to movie spy James Bond, surpassed 5,000 deliveries last year for the first time since 2008, and expects to exceed its 2017 guidance of at least 180 million pounds in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) on more than 840 million pounds of revenue.
The valuation is a preliminary estimate and no decision has been taken on the possible listing as advisers are also considering other options for the carmaker, the sources said.
“As a matter of policy, Aston Martin does not comment about speculation concerning future ownership or capital restructuring,” said Simon Sproule, a spokesperson for the Gaydon, England-based carmaker. The company is controlled by Investindustrial Advisors Ltd., which declined to comment, and Kuwaiti Investment Dar.
Aston Martin will start building the DBX SUV at its new factory in Wales by 2019. The company said in November that its new $150,000 Vantage model had sold out almost all of its production capacity for 2018.
Ferrari has a current stock-market value of about $21.4 billion, and an enterprise value of about 18.5 times its expected 2018 EBITDA, based on data compiled by Bloomberg.