Aston Martin shares slump 5% on luxury car maker’s stock market debut
Aston Martin’s much-anticipated debut on the stock market floundered as the British luxury car maker’s share price fell as much as 7.5 per cent on their opening day of trading.
The 105-year-old company – which has gone bust seven times – had already slashed the top end of its valuation from £5.1bn to £4.3bn prior to going public on Wednesday.
Aston closed on Wednesday at £18.10, down 5 per cent, valuing the company at around £4.1bn.
Despite the slow start, three investors – Investindustrial, Adeem Investments and Primewagon – along with Aston’s senior management will bank more than £1bn between them.
The company is the first UK car manufacturer to sell shares in years and had attracted a lot of interest despite its chequered financial history.
Jasper Lawler, of London Capital Group, said Aston had the kind of “dinner party” appeal that few initial public offerings can match. “The British carmaker is in rude financial health,” he said.
Aston on Tuesday narrowed its expected price range from between £17.50 and £22.50 per share to between £18.50 and £20 per share.
But investors baulked at the valuation of almost 21 times the company’s earnings which put it at around the same multiple as its only other listed rival Ferrari, a company that has consistently delivered profits.
Chief executive Andy Palmer said: “Today’s listing on the London Stock Exchange represents a historic milestone for Aston Martin Lagonda.
“We are delighted by the positive response we have received from investors across the world and are very pleased to welcome our new shareholders to the register.