The Aston Martin IPO

The Aston Martin IPO

Aston Martin, the luxury British sports car brand driven by fictional spy James Bond, said Monday that it will launch next month on the London stock market.

The company announced in a statement that its shares will begin trading in October with a free float of at least 25 percent of the issued share capital.

The company, which decided last month stage a partial initial public offering (IPO) in London, also named Penny Hughes as chairman in a break from its tradition of an all-male board.

The car manufacturer could be valued at up to £5 billion ($6.5 billion, 5.9 billion euros), media reports indicate.

The century-old carmaker, based in Gaydon in central England, is controlled by Italian private equity fund Investindustrial and Kuwaiti investors.

German carmaker Daimler will meanwhile retain its near 5.0-percent stake.

For over half a century, the name DBS has meant just one thing: the ultimate production Aston Martin. A DBS is a distilled concentrate of all that has made Aston Martin not just one of the most coveted brands in the automotive sphere, but in all fields of endeavour, right around the world.

Now the new DBS Superleggera has arrived. Its beauty leaves no room for doubt. Its power cannot be reasoned with.

Unquestionably, DBS Superleggera sits at the pinnacle of the Aston Martin production range. It is both a shining light expressing the most beautiful automotive art and, at the same time, a dark and menacing shadow of brutal, unequivocal strength. It is this fine blend of seemingly opposing traits that makes the DBS Superleggera the absolute Aston Martin.

Aggressive, yet beautiful. Super lightweight, yet powerfully strong. A commanding presence, yet lavishly finished.

The Company can confirm the following intended offer structure for the proposed IPO:

Premium listing on the Official List and admission to trading on the LSE’s main market for listed

Daimler AG of Germany will remain a shareholder and will not sell-down at IPO, converting its
current non-voting stake of approximately 4.9% to ordinary shares. It also has agreed to a 12-
month lock-up of these ordinary shares after listing.

Preference shares and associated warrants to be converted into ordinary shares.

Secondary sell-down of existing ordinary shares by selling shareholders.

Selling shareholders include Investindustrial, Adeem Investments and Primewagon.

Targeted offering to institutional investors in the UK and elsewhere outside the United States
in reliance on Regulation S of the Securities Act and in the United States to “qualified
institutional buyers” within the meaning and pursuant to Rule 144A of the Securities Act.

Eligible Aston Martin employees, officers, customers and Aston Martin Owners Club members,
who are resident in the UK, will be able to apply to purchase Shares in the Offer at the offer

The indicative price range in respect of the Offer (the “
Price Range”), together with the
maximum number of Shares to be sold in the Offer and any other outstanding information will
be determined in due course and contained in the Price Range Prospectus expected to be
published by the Company on or around 20 September 2018.

The final offer price in respect of the Offer (the “
Offer Price”) will be determined following publication of the Price Range Prospectus and a book-building process, and is currently
expected to be announced in early October 2018.

It is expected that Admission will take place in October 2018. Immediately following Admission,
the Company intends to have a free float of at least 25% of its issued share capital and expects
that, following Admission, it would be eligible for inclusion in FTSE UK indices.

It is intended that an over-allotment option of up to 15% of the total share offer will be made

Details of (i) remuneration and incentivisation arrangements to apply post-IPO and (ii) the
incentivisation arrangements put in place and funded by the current shareholders for senior
management and which crystallise on IPO, will in each case be disclosed in the Price Range

Each of the Company, its Directors and the Selling shareholders will agree to customary lock-
up arrangements in respect of their Shares for a period of time following Admission.

Joint Global Coordinators: Deutsche Bank AG, London Branch, Goldman Sachs International
and J.P. Morgan Securities plc (which conducts its UK investment banking activities under the
name J.P. Morgan Cazenove), which is also acting as sole sponsor. Lazard is acting as
Financial Advisor to the Company.

The Company also reaffirms the following Business Objectives
outlined in the Registration Document
published on 29 August, which forecast that:

For 2018, the Group expects to deliver approximately between 6,200 units and 6,400 units and
to achieve an Adjusted EBITDA margin of approximately 23% and an Adjusted EBIT margin of
approximately 13%.

Net debt/Adjusted EBITDA leverage ratio target at or below 2x by year end 2018.

Produce approximately between 7,100 units and 7,300 units in the year ending 31 December
2019, and to produce approximately between 9,600 units and 9,800 units in the year ending 31
December 2020.

Increase production to approximately 14,000 units annually in the medium term.

Achieve an Adjusted EBITDA margin greater than 30% and an Adjusted EBIT margin greater
than 20% in the medium term.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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