Published: Fri, October 05, 2018
Money | By Ralph Mccoy

Aston Martin shares start trading at $24, value company at $5.6B

Aston Martin shares start trading at $24, value company at $5.6B

The now publicly traded company is officially branded as "Aston Martin Lagonda Global Holdings PLC" and is represented by the letters AML on the London Exchange.

The company, which a year ago made its first profit since 2010 and has gone bankrupt seven times, had priced its shares at 19 pounds each, giving it a market capitalization of 4.33 billion pounds ($5.63 billion).

According to The Guardian, James Bond's carmaker of choice had initially indicated that shares would be priced between £17.50 and £22.50.

Its original price range for auto maker's float was between £17.50 and £22.50. However, earlier this week it narrowed this range to between £18.50 and £20 a share.

Aston Martin's long-awaited debut on the stock market hasn't gone too well.

"We are delighted by the positive response we have received from investors across the world", Aston Martin CEO Andy Palmer said in a statement.

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It had set an IPO price of 440p per share but its stock slip as low as 334.5p.

Nevertheless, the 105-year-old company - based in Gaydon in central England - has a troubled history and has declared itself bankrupt multiple times in the past. Meanwhile, some existing private shareholders are thought to have cashed out their investments, though German auto giant Daimler continues to own its stake of 4.9 percent. In August, it was revealed that the company had a 14% increase in revenue in a single half-year, bringing total revenue up to just short of £450 million.

It sold more than 5,000 cars in 2017, its best performance in nine years.

Aston Martin wasn't the only one disappointed with its initial public offering today.

At the time of the IPO, he said: "Today's results show that we have continued to deliver sustainable growth, margins and value for our shareholders whilst launching three new models and variants in the first half of the year".

Gaydon, England-based Aston Martin, which is less profitable and carries a weaker balance sheet than its Italian peer, is attempting to build up its presence in the sports vehicle world with its Vanquish, Vantage and DB models, while reincarnating the Lagonda name to break into the segment now shared by British rivals Rolls-Royce Motors and Bentley.

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