Shares in luxury carmaker Aston Martin plunged 14 per cent yesterday after it said it was considering options after rumours that Saudi Arabia’s sovereign wealth fund was eyeing an investment.
As first reported by trade publication Autocar, Aston Martin is considering sale of equity in return for an infusion of as much as £200m.
It is understood that there are two rival bidders looking to nab a stake in the firm, which include a Saudi firm and a US firm.
On the funding options, the car firm told Sky News that it had all “funding options under review,” adding that: “Any funding option, if explored and executed, would be to support and accelerate the company’s future growth.”
In a statement released yesterday, the British firm said: “Aston Martin Lagonda notes recent movements in its share price and media speculation regarding prospective fundraising efforts
“Order books are robust and have strengthened further in recent months, with sports cars sold out into 2023 and order intake for DBX more than 40% higher than the previous year”.
The firm lost an estimated £110m in 2020 as a result of poor sales during the pandemic.
However, Aston Martin reported “significant progress” in February, with wholesales increasing 82 per cent in the first quarter of 2021.
Revenue increased to £1.1bn largely due to substantial volume growth, driven by customer demand, and strong pricing dynamics. This crucially represents a 12 per cent growth on 2019 revenues of £981m pre-COVID and strategic shift to ultra-luxury.
Nonetheless, the company’s current balance sheet still has around £1.2bn of existing loans, bank drafts and bonds.