For the sort of person who buys a car made by Aston Martin Lagonda, the 1,900p flotation price might be disappointingly cut-price.
The producer of hand-crafted luxury sports cars said the offer price implies a market capitalisation of around £4.33bn, which likely will not be enough to propel it into the FTSE 100, as only two Footsie constituents – Royal Mail and Rightmove – have a lower capitalisation than that, while 10 or 11 FTSE 250 constituents have a higher market value.
Aston Martin narrowed the price range on Monday for the initial public offering (IPO) to £18.50 - £20.00 from £17.50 - £22.50.
The company has a long history of making expensive cars and still losing money. Among the companies offloading their shares through the flotation are Investindustrial, Adeem Investments, Primewagon and members of the car firm’s senior management.
German car giant Daimler is not reducing its stake and will instead convert its current shareholding of non-voting shares into 4.9% of the ordinary share capital of Aston Martin.
Conditional dealing in the shares started at 8.00am on Wednesday morning with the share price edging up to around 1,913p.
"Today's listing on the London Stock Exchange represents a historic milestone for Aston Martin Lagonda. We are delighted by the positive response we have received from investors across the world and are very pleased to welcome our new shareholders to the register. We are excited about the momentum across the company and are fully focused on continuing to deliver our exciting growth strategy through the Second Century Plan,” said Dr Andy Palmer, who is not only the president of Aston Martin Lagonda Global Holdings PLC but also the group chief executive officer.