Aston Martin Lagonda Global Holdings PLC on Wednesday said it had raised around £211 million to fund future growth, including its electrification strategy.

The Gaydon, Warwickshire-based luxury car maker confirmed it had raised £111 million via a placing at 100.00 pence per share, a 7.3% discount to Tuesday’s closing price of 107.90p.

On Wednesday morning, shares were 4.9% lower at 102.57p in London. The stock has fallen 56% over the past year.

Leading shareholder Yew Tree Overseas Ltd subscribed for £50.5 million worth of stock through the placing. (The Yew Tree consortium is led by Aston Martin Executive Chair Lawrence Stroll.)

In addition, Aston Martin raised £100 million through the private placement of additional senior secured notes, which attracted strong support from bond holders.

A separate retail offer raised just under £1.3 million, the firm added.

Aston Martin said proceeds will provide ‘increased financial resilience and strength’ as the company maximises the potential of its next-generation models.

Funds will support capital investments related to the electrification strategy, consistent with Aston Martin’s plans to invest around £2 billion over the five-year period between 2023 and 2027.

It also plans to use the proceeds to repay the borrowings under its existing super senior revolving credit facility, to pay fees and expenses, and for general corporate purposes.

Chief Executive Adrian Hallmark thanked investors ‘who continue to show strong support for the company’.

‘With this financing successfully secured, we are now well positioned for growth, underpinned by the strength of our brand and the world-class product portfolio we have brought to market.’

Stroll commented: ‘Aston Martin has made huge strategic progress since the Yew Tree Consortium first invested in the company in 2020, transforming our product offering, revitalising our brand and accelerating our business operations forward.

‘With the strong backing of Aston Martin’s strategic shareholders and the board, Adrian now leads the company into an exciting 2025 with a stronger and more resilient balance sheet, readying Aston Martin to deliver long-term value for all stakeholders.’

Aston Martin announced the fundraise after the London market close on Tuesday.

In a statement, the firm trimmed earnings guidance to reflect the delayed delivery of some Valiant models.

The luxury car maker expects full-year adjusted earnings before interest, tax, depreciation and amortisation between £270 to £280 million.

It had previously forecast adjusted Ebitda to be ‘slightly below’ the £305.9 million it achieved last year. This guidance was cut in September.

Citi put the consensus before Tuesday’s announcement at £290 million.

Aston Martin said the ‘ultra-exclusive’ Special, Valiant, remains on track to commence delivery to customers before the end of 2024.

‘However, due to a minor delay in the timing of a small number of deliveries, the group now expects to deliver around half of the 38 Valiant models by the end of the year (previously guided to be the majority). The balance of deliveries will now occur in early 2025.’

Aston Martin said it remains focused on achieving its financial 2025 targets. These include delivery of free cash flow generation during the financial year while progressing towards its previously communicated mid-term financial targets for financial 2027/28.

‘We continue to think that, even with its brand new models and improved commercial strategy, these targets remain ambitious,’ Citi commented.

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