Aston Martin to test investors’ appetite for luxury stocks
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Aston Martin has selected seven banks to prepare an initial public offering (IPO), with sources saying the company would seek a valuation of between $5.69 billion and $7.11 billion.
According to Sky News, Aston Martin’s shareholders have approved the appointment of Bank of America Merrill Lynch, Credit Suisse, HSBC and Unicredit to act as managers on the prospective deal. These banks would work with Deutsche Bank, Goldman Sachs and JPMorgan, the global coordinators on Aston Martin's IPO.
In February, Aston Martin said that it was examining a range of strategic options, including the potential for an IPO, so these developments suggest that going public is the option that the company settled on.
While London is perceived as the most likely venue for the IPO, sources told Sky News that its board and shareholders are also considering listing in New York.
Italian luxury carmaker Ferrari (RACE) went public in October 2015. The company priced its IPO at $52 per share and its debut valued it at nearly $10 billion, according to The Wall Street Journal. On Wednesday, shares were trading around $125 apiece.