1st Aug 2023 10:34
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Tuesday said it raised a total of GBP216.1 million from the share offer it had announced after the London market close on Monday.
The Gaydon, England-based luxury sports car manufacturer said the fresh funds will be used to reduce debt, with the resulting lower interest costs supporting its drive to becoming free cash flow positive from 2024.
Aston Martin raised GBP210.5 million from a placing of 56.8 new million shares at 371 pence each. This was a 6.2% discount to the stock's closing price in London on Monday of 395p. Shares were down 3.3% to 382.19p on Tuesday morning.
The company raised an additional GBP4.0 million from 1.1 new million shares at the same price in its retail offer and GBP1.6 million from 417,789 shares at the same price through a subscription by directors.
The placing was run by Barclays Bank PLC, part of Barclays PLC, and JP Morgan Securities PLC, part of JPMorgan Chase & Co.
It was supported by all major investors. These included Yew Tree Overseas Ltd, which is the vehicle of Aston Martin Executive Chair Lawrence Stroll, as well as Saudi Arabia's Public Investment Fund, China's Geely International (Hong Kong) Ltd, and Germany's Mercedes-Benz Group AG.
"The tremendous backing from our largest shareholders along with the strong appetite from institutional and retail investors also demonstrates the continued confidence in Aston Martin and our future direction," Stroll said.
By Tom Waite, Alliance News editor
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