Aston Martin announces plans for IPO
LONDON — Aston Martin, the British automaker best known for being James Bond’s car brand of choice, said Wednesday that it plans to go public.
The potential offering would mark a turnaround for the once-troubled company, which has filed for bankruptcy seven times over its century-long history and passed from owner to owner, including the likes of Ford Motor Co.
A stock sale would also plant Aston Martin’s flag in the markets as an independent, publicly traded British carmaker as its home country heads toward divorce from the European Union.
The plans signal a belief that even after the country’s EU departure, Aston Martin’s luxury sports cars and sedans would appeal to deep-pocketed buyers
worldwide. In a regulatory filing, the company said it stood to benefit from a growth in “high net worth individuals” worldwide, particularly in Asia.
“Aston Martin Lagonda has been transformed into a luxury business focused on creating the world’s most beautiful high-performance cars,” Andy Palmer, Aston Martin’s CEO, said in a statement.
The company’s main draw is its history as one of Britain’s most revered makers of lust-worthy automobiles. It’s best known, of course, in connection with the superspy 007, who drove Aston Martins that — across 11 movies — fired machine guns, featured ejector seats and even turned invisible, in 2002’s Die Another Day. (Regrettably, the vehicles rarely returned from missions in one piece.)
If the company moves forward with an initial offering — it will make a final decision next month — it will follow in the footsteps of Ferrari, the Italian luxury carmaker. That company currently commands a premium valuation among investors, with its $24 billion market capitalization trading at 35 times its estimated earnings for the next 12 months. By contrast, Daimler, the maker of Mercedes-Benz cars, trades at seven times its estimated earnings.
Underpinning Aston Martin’s financial aspirations is a business plan focused on both Bond-esque speedsters and, through a reintroduction of its Lagonda brand, a line of luxury electric SUVs and sedans.
In its regulatory filing Wednesday, Aston Martin said its adjusted pretax earnings for the first half of the year rose 14 percent from a year before, to $137 million. Sales during the period grew 8 percent from a year before.
The company said it expects to produce as many as 7,300 cars next year and as many as 9,800 cars in 2020.
About a quarter of the company’s stock would be publicly traded in any such listing. Two of its owners, Invest Industrial of Italy and Investment Dar of Kuwait, would sell some of their holdings. But another major investor, Daimler of Germany, would retain its 4.9 percent stake.