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You won’t believe how much luxury carmaker Aston Martin is valued at

05 October 2018

Aston Martin's market debut will be closely watched, after several big European IPOs got off to a cautious start last week when crowd-lending platform Funding Circle FCH.L traded down on its debut while Swiss packaging company SIG Combibloc SIGNC.S booked gains.

The luxury vehicle maker priced its shares at £19, towards the bottom end of the range, valuing the company at £4.33bn.

The firm had recently announced the price range of its shares - between £17.50 ($22.73) and £22.50 ($29.23). This was later narrowed to between £18.50 and £20. Current Aston Martin Lagonda shareholders could also make a further 5,700,072 shares in the case of an over-allotment option, which would result in a total share issue worth £1.19bn (Rs 11,319 crore) (27.5 percent of the company).

"Obviously we'd all prefer no tariffs to be frank, no doubt, but the industry has to learn to adapt and it always has adapted to changes", Palmer said, referring to proposed tariffs on imported products - 60 percent of Aston Martin's parts are now imported from the EU.

Aston Martin, famed for making the sports auto driven by fictional secret agent James Bond, said it expected to close the IPO books at midday London time on Tuesday.

They had been priced at £19 a share, valuing the firm at £4.3bn, but have been as low as £17.75.

Aston claims that it is on track to produce between 6200 and 6400 cars in 2018, with up to 65 percent of those being produced in the latter half of the year.

Despite the company's chequered history - it has gone bust seven times in 105 years - there had been much anticipation over the share sale. Operating profits rose 14 per cent to £106m.

Palmer said he was "delighted" with the response to the IPO, describing it as a milestone for the company and pledging to deliver on growth plans.

Eligible Aston Martin employees, customers and owners' club members based in the United Kingdom will benefit from a specific share offer. Still, Aston Martin's owners will reap a 10-fold gain on their investment in about six years.

Germany's Daimler AG meanwhile will not sell down its Aston Martin holding as part of the IPO, and will instead convert its non-voting 4.9-per-cent stake to shares.

You won’t believe how much luxury carmaker Aston Martin is valued at