Aston Martin reveals £653 million investment plan

Warwickshire-based luxury car manufacturer Aston Martin has announced plans to raise £653.3 million in equity capital as it seeks to lower its debt and secure its long-term future.

The funding includes a £78 million deal with the Saudi Public Investment Fund in exchange for a 16.7 per cent shareholding and up to two non-executive director seats on its board. It will become the second-largest shareholder.

A further £575 million will be raised through a rights issue, which is expected to be undertaken this autumn.

Lawrence Stroll, executive chairman, said: "Today's announcement marks the latest success in the evolution of Aston Martin, the restoration of the business and balance sheet we inherited, and the acceleration of our long-term growth potential.

"Since I became executive chairman in 2020, we have made significant progress on our journey to become the world's most desirable, ultra-luxury British performance brand.

"We started by fixing the core fundamentals of the company, successfully de-stocking the dealer network to rebalance supply to demand, optimising inventory levels aligned for an ultra-luxury business, and now benefit from the strongest order book we have seen in many years.

"We also signed a strategic co-operation agreement with Mercedes-Benz and have developed a breathtaking pipeline of products, starting with the DBX707 and V12 Vantage, all of which are aligned with our 40 per cent+ contribution margin targets - a significant increase from the past.

"Aston Martin's return to the pinnacle of motorsport with the Aston Martin Aramco Cognizant Formula One team, has also ushered in a new era for our iconic British brand.

"Our focus on building brand equity and unleashing the potential of Aston Martin is already delivering growing demand from a new generation of customers, with more than 60 per cent new to the brand in 2021."