(Sharecast News) – Aston Martin Lagonda raised fresh capital in a discounted share offering.
The sportscar maker announced that it successfully sold 58.25m shares at 371.0p each – a 6.2% discount to their closing price from the day before – for gross proceeds of £216.1m.
Aston Martin’s executive chairman, Lawrence Stroll, said: “The tremendous backing from our largest shareholders along with the strong appetite from institutional and retail investors also demonstrates the continued confidence in Aston Martin and our future direction.
“I would also like to thank my fellow investors in the Yew Tree Consortium, PIF, Geely and Mercedes-Benz, for their support as we accelerate our vision to be the world’s most desirable ultra-luxury British performance brand.”
Proceeds from the sale would be used to deleverage, hit its net leverage targets more quickly and to become free cash flow positive from 2024 by signficantly cutting its interest costs, the company said.
They would also support the capital investments needed for its electrification strategy which foresaw roughly £2bn of investments over 2023-27.
Of the shares sold, 56.75m shares were placed via a placing, approximately 1.08m through a retail offer and the remainder via a director subscription.
The company would be subject to a lock-up period of 180 days following admission of the shares which was expected to take place on 3 August.
As of 0834 BST, shares of Aston Martin were falling by 3.74% to 380.60p.