LONDON - Aston Martin (LON:AML) Lagonda Global Holdings plc announced a conditional subscription offer for new ordinary shares, allowing retail investors to participate alongside an accelerated bookbuilding process for institutional investors. The subscription, conducted via PrimaryBid, is part of the company's broader financing strategy, which includes a placing of new ordinary shares and debt issuance, aimed at strengthening its financial position and supporting future growth, including its electrification strategy.
The offer is available to both existing shareholders and new investors, with the company expressing an intention to prioritize applications from current shareholders. The minimum subscription amount for the retail offer is set at £250 per investor, with no commission charged by PrimaryBid. The issue price for the new shares will match that of the institutional placing, determined at the close of the bookbuilding process.
The proceeds from this financing initiative are expected to provide Aston Martin with increased financial resilience, enabling the company to maximize the potential of its next-generation model portfolio and invest in its electrification strategy, with plans to invest approximately £2 billion over five years from 2023 to 2027. Additionally, funds will be used to repay borrowings under the company's existing credit facility, pay related fees and expenses, and support general corporate purposes.
The retail offer is part of a comprehensive share offering which also includes director subscriptions at the same issue price as the placing. The offer is subject to the condition that the new ordinary shares are admitted to the Official List of the Financial Conduct Authority and to trading on the main market of the London Stock Exchange (LON:LSEG), with admission expected on November 29, 2024.
Aston Martin's decision to extend the offer to retail investors aligns with guidelines from the Pre-Emption Group, reflecting the company's appreciation for its retail shareholder base. The retail offer is open to investors in the UK, with applications facilitated through PrimaryBid's network of investment platforms, retail brokers, and wealth managers. The company reserves the right to scale back orders at its discretion.
This move is part of a broader trend in the automotive industry, as traditional car manufacturers increasingly seek to bolster their financial foundations while transitioning to electric vehicle production. The information is based on a press release statement from Aston Martin.
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