PAUL SCOTT on AML3 Oct 2018 22:12
I see that Aston Martin Aston Martin Lagonda Global Holdings (LON:AML) has announced its offer price, which is £19.00 per share. With a total of 228.0m shares, this values it at £4.33bn. 57m shares are being sold by selling shareholders, about 25% of the shares in issue, with a further 5.7m shares possibly being sold. There doesn't appear to be any new money raised for the company.
I've added it to my price monitor, more for curiosity than anything else. There's a lot of volume being traded in the first 12 minutes of trading this morning, at the time of writing, 3.5m shares already traded, with the price moving slightly above & below the £19 issue price.
The development costs of new models are astronomical. So when I saw that AML was quoting EBITDA (which ignores those costs of course!), then I rejected it immediately as a possible investment. I like driving Aston Martins, but I wouldn't want to own shares in it.
It will be interesting to see how this deal works out. My broker tells me that the IPO and fundraising market is awful at the moment - with several proposed IPOs and placings being cancelled due to lack of interest from investors. Therefore this might not be a good time to be holding shares in listed stockbrokers, if they rely on deal income.
Cheers 🍻