Aston Martin narrows price range ahead of IPO
Aston Martin has narrowed the price range for its IPO later this week.
The luxury car manufacturer is now set to float shares at between 1,850p per share and 2,000p per share, tightening its previous range of between 1,750p and 2,250p.
Read more: Aston Martin staff set for cash reward as it gears up for IPO
The James Bond favourite, whose cars typically cost upwards of £120,000, said it has now covered its books at that offer ahead of its stock market debut on Wednesday.
It means it won't hit the £5.07bn market cap its previous share range would have valued it at.
Yesterday Aston Martin said it would give employees a one-off cash reward to buy their own shares when it goes public with a 25 per cent stock float.
Institutional investors, staff and customers will be able to buy shares on the day Aston Martin lists, but private investors must wait until next Monday.
Russ Mould, investment director at AJ Bell, said chief executive Andy Palmer will be hoping to replicate Ferrari’s successful 2015 float, which saw shares surge from $52 to $140 today, giving it a $26.4bn market cap.
“Aston Martin Lagonda is clearly planning to deliver substantial profits growth under its Second Century Plan and a three-pillar product strategy, with seven new models coming out between 2016 and 2022,” he added.
Read more: Aston Martin to IPO in £5bn stock market listing
Aston Martin posted boosted profits of £106m in its half-year results at the end of August, while revenue also grew eight per cent year-on-year to £445m.
The company expects to ship between 6,200 and 6,400 cars in the second half of the year, claiming the new Vantage and DBS Superleggera models should drive demand.