Aston Martin IPO Pricing Narrows Toward Bottom End of Range

(Bloomberg) -- Aston Martin said investors in its initial public offering should be prepared to pay 19 pounds ($24.64) per share or risk losing out when the company lists on the London Stock Exchange this week, according to terms obtained by Bloomberg.

The figure is toward the lower end of an updated range of 18.50 to 20 pounds given out on Monday, but well below the top end of 22.50 pounds that the company had been targeting in the run-up to the deal.

Key Insights

• Momentum for the IPO slowed this week as investors balked at the highest valuations sought. The company has said it has no fears about Brexit, but it may be no coincidence the price has fallen as negotiations between the U.K. and the European Union take an uncertain turn.
• With a valuation of about 4.31 billion pounds based on 19 pounds a share, Aston Martin’s market-cap-to-Ebitda ratio will still be about even with supercar rival Ferrari NV (based on Aston’s half-year results).
• While the total stock-market value is lower than the 5.07 billion pounds Aston sought, it’s still pretty good for a company that’s less profitable and has a weaker balance sheet.
• Analysts had shown concern the valuation being sought was too ambitious. Still, Aston Martin’s owners will reap a 10-fold gain on their investment in about six years.

Read: Aston Martin Pares Lofty IPO Targets Ahead of Market Listing

--With assistance from Simon Lee.

To contact the reporter on this story: Tommaso Ebhardt in Milan at tebhardt@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

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