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Will Aston Martin go public?

December 19, 2017

Aston Martin's DB11 Volante. Image credit: Aston Martin


British automaker Aston Martin is stirring up potential sale rumors after reports revealed that the brand is working with an investment bank.

According to a Reuters report, Aston Martin has hired investment bank Lazard to look into creating a preliminary plan to either set up an IPO or a trade sale. The rumors come after the brand saw positive growth after years of stagnancy.

Aston Martin declined to comment on the matter.

Turnaround and IPO
Investindustrial and a group of Kuwait investors have the majority control of Aston Martin, with 90 percent of the company. The investors are looking to either see the brand go public or sell.

Experts claim the deal could value Aston Martin at $4 billion.

Aston Martin looks to the future with possible IPO. Image credit: Aston Martin 

Aston Martin CEO Andy Palmer has expressed in the past that while the decision to go public is up to the shareholders, it would be best if it happened before the company’s turnaround plan is complete.

The company had not been profitable for roughly six years prior to 2017, prompting the brand to complete an overhaul. Aston Martin is now seeing profits again, with a major spike in the beginning of 2017.

According to Fortune, the company saw a 67 percent hike in deliveries and higher selling price points. The spike could be attributed to special edition models, its recent DB11 model and plans of its first electric vehicle to come within two years, seeing a profitable year for the brand for the first time since 2010.

Aston Martin’s turnaround plan is set to finish in 2022.

Reports of the company possibly turning public have been spurred by its profits this year, with experts in August telling Bloomberg it could happen “as early as next year.”

The move to go public follows a similar strategy to Ferrari, which went public in 2015.

Ferrari GTC4 Lusso. Image credit: Ferrari 

A report from UBS showed that Ferrari’s stock is likely to increase with it being up over 70 percent since its IPO in 2015. Experts have attributed part of its success to its foray into hybrid models.

Aston Martin’s possible electric vehicle to come could be a factor that will bode well for an IPO.

Aston Martin initiatives
The British automaker also recently took on a strategy to gain popularity in the United States and aligned itself with Super Bowl LI MVP and New England Patriots quarterback Tom Brady.

Mr. Brady is the now undisputed, best-ever quarterback to play professional football in the NFL after winning his fifth Super Bowl in seven appearances with the Patriots. Given his fame as a star athlete, Mr. Brady has inked endorsements deals with brands such as Under Armour athletic wear, Ugg boots and Movado watches, contracts that earn the quarterback a reported $184 million each year (see more).

Aston Martin also recently ushered in the opening of its second South Wales manufacturing plant in the United Kingdom with a fun video that simultaneously shows off the state-of-the-art facility alongside its vehicles' power (see more).