The Aston Martin Lagonda Global Holdings PLC (LON: AML) share price fell 7.24% after announcing the results of the non-pre-emptive share placing of new ordinary shares of £0.10 each in the capital of the Company announced on 3 July 2023.
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The company also made a concurrent offer to retail investors to purchase ordinary shares in the company via the PrimaryBid platform. The participating investors bought the new shares at 371 pence each, representing a slight discount to yesterday’s closing price; hence, the decline in AML’s share price.
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The ultra-luxury car manufacturer offered 58,245,957 new Ordinary Shares to the participating investors and raised gross profits of £216.1 million. The price offered during the placing represented a 6.2% discount to yesterday’s closing price of 395p.
Aston Martin placed 56,750,000 new Ordinary Shares through the share placing offered to institutional investors to raise gross proceeds of £210.5 million. In comparison, 1,078,168 new ordinary shares were offered t retail investors via the PriamryBid platform to raise gross proceeds of £4.0 million.
The company’s directors also subscribed to 417,789 new Ordinary Shares worth £1.55 million. Aston Martin noted that the proceeds of the capital raise would be used to deleverage its balance sheet further and boost its liquidity, which stood at £460 million at the end of H1 2023.
The company intends to achieve its net leverage ratio targets and become free cash flow positive from 2024, supported by a significant interest cost reduction. The company plans to achieve a net leverage ratio of about 1.0X in 2024/2025, with the figure dropping below 1.0x in 2027/28.
Lawrence Stroll, Aston Martin’s Executive Chairman, 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.”
*This is not investment advice.
Aston Martin AML) share price.
The Aston Martin (AML) share price fell 7.24% to trade at 366.88p, from Monday’s closing price of 395.50p.
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