PIF-backed Aston Martin to raise $266m, warns on profits

Aston Martin

• 111 million shares issued
• Delay in Valiant deliveries
• Profits down as a result

Aston Martin, the British luxury carmaker part-owned by Saudi Arabia’s Public Investment Fund, is looking to raise £211 million ($266 million) by issuing new shares and taking on more debt.

At the same time it warned that annual profits could be down as much as 11 percent because of delays in delivering cars. 

The company issued 111 million new shares at 100 pence each, a 7.3 percent discount on the closing price on November 26, Aston Martin said in a statement. 

It is also raising £100 million through a debt offering of senior secured notes.

A delay in the delivery of a small number of ultra-exclusive Valiant models means it now expects adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) of between £270 million and £280 million for 2024. Analysts’ previous estimates had been between £267 million and £300 million. 

The financing is expected to provide Aston Martin with liquidity of £500 million at the end of the year.

• PIF raises stake in Aston Martin to 20.5%

• UAE launches Aston Martin-branded residential tower

• Saudi deal with Lucid powers up EV charging network

Shares in Aston Martin opened down 1.3 percent on Thursday and are down about 55 percent this year. 

The company said it expects to deliver around half of the Valiant models by the end of the year, with the remainder in 2025. It said there was a “minor delay in the timing of a small number of deliveries”. 

It will produce only 38 units of the Valiant, a vehicle designed by Aston Martin alongside the Formula One driver and two-time world champion Fernando Alonso.

The retail price of the Valiant is about £2 million ($2.54 million). All the units have been pre-sold, the company said.

Aston Martin said it expects to achieve revenues of about £2 billion in 2025, with ebitda of around £500 million. 

PIF owns a 20.5 percent stake in Aston Martin through its investment in the EV company Lucid.

Lucid supplies Aston Martin with components for manufacturing battery-electric vehicle models. Aston Martin is planning to launch its EV next year, which it delayed because of a lack of consumer demand.