Aston Martin has raised approximately £211 million through a combined share offering and debt issuance to bolster its financial position amid its push into electric vehicles and new product launches.
The funding round comprises £111 million from a share offering and £100 million from a senior secured notes placement.
The share offering consisted of three components: a primary institutional placing, a retail investor opportunity through the PrimaryBid platform, and a director subscription.
The company issued a total of 111,249,416 new ordinary shares at 100 pence per share, representing a 7.3% discount to the closing price of 107.90 pence on the announcement date. Of these shares, 110 million were allocated to institutional investors and company directors, raising £110 million, while retail investors subscribed for 1.25 million shares, contributing an additional £1.25 million.
The funds will be allocated to deliver Aston Martin’s strategic plans and strengthen its product offering.
The company has undertaken a comprehensive renewal of its core model range over the past 18 months, beginning with the DB12 in Q3 2023, followed by the Vantage and DBX707 in Q2 2024. The launch cycle will culminate with the delivery of the V12 flagship Vanquish by the end of 2024, a model the company hopes will refresh the portfolio.
In addition, a significant portion of the funds raised will support Aston Martin’s ambitious electrification strategy, part of a broader £2 billion investment plan scheduled between 2023 and 2027. The company will also use the proceeds to repay existing borrowings under its super senior revolving credit facility and strengthen its overall financial resilience.
This financing comes as Aston Martin faces a slowdown in demand, and investors will hope the cash injection has the desired effect. The company recently announced a reduction of approximately 1,000 units in its 2024 wholesale volumes, citing supply chain disruptions and weakened market conditions in China.