Aston Martin confirms plans to float on London Stock Exchange

Aston Martin confirms plans to float on London Stock Exchange

PARIS, FRANCE, JAN 30 2017: Dark grey Aston Martin DB5 on a Vendome square in Paris.

Aston Martin has confirmed plans to float on the London Stock Exchange.

The luxury carmaker is reportedly seeking a valuation of up to £5 billion and will initially float around 25 percent of the company.

“Today’s announcement represents a key milestone in the history of the company, which is reporting strong financial results and increased global demand for its award-winning sports cars,” said the chief executive, Andy Palmer.

“Today’s results show that we have continued to deliver sustainable growth, margins and value for our shareholders whilst launching three new models and variants in the first half of the year.”

The group made the announcement as it posted its half-year profits on Wednesday, totalling £42 million and an eight percent rise in revenue.

The 105-year-old carmaker is synonymous with James Bond and will likely be placed at the top end of the FTSE 250, just below FTSE 100 firms such as the Royal Mail (LON: RMG).

Despite 25 percent of its cars to the EU whilst operating in the UK, Palmer is not concerned with the Brexit impacts.

“We can demonstrate that Brexit is not a major effect for us,” he said. “If there is a tariff into Europe, it’s countered by a tariff into the UK for our competitors so you might lose a little bit of market share in the EU but you pick it up in the UK,” he added.

Laith Khalaf, a senior analyst at Hargreaves Lansdown said: “There are few people who wouldn’t want an Aston Martin on their drive, and even fewer who can afford one.”

“However this stock market float allows investors to buy into a little of the glamour of Aston Martin, without getting a second mortgage,” he added.

Aston Martin was founded in 1913 and is one of the UK’s most well-known brands.