AML - Stock Market Listing

[Big Ry]

The comment about customers potentially being able to buy at the IPO price. Anybody have any thoughts on who AML consider to be customers ?

Could it be only people who have bought brand new, or will it include people who currently own Approved Used ? If the latter, how do AML genuinely know the person still owns the car ?

Any thoughts ?

[raceboy]

Big Ry said:

The comment about customers potentially being able to buy at the IPO price. Anybody have any thoughts on who AML consider to be customers?

Could almost be tempted to have a very small dabble if they included owners of any old Astons in that, and if the 'dividend' included a few Aston perks, a bit off at the Dealers, fizz and nibble car launch invites, that sort of thing I'd be very tempted, I'm that easily bought.

[hornbaek]

The only real benchmark to AML is Ferrari. Given AML‘s very short track record of being a profitable car manufacturer against Ferraris proven track record together with the fact that Ferraris orderbook is completely full for the next many years, I can’t see why one should buy the AML share at a premium to Ferrari other than for sentimental reasons.

[avinalarf]

hornbaek said:

It’s an interesting conundrum. The owners are trying to position AML as a luxury brand and valuation should follow the luxury goods peer group. However, at the end of the day it is a car manufacturer which will follow the exact same economic cycles as its peer group and that will be facing all the possible headwinds in terms of environmental legislation being thrown at the sector. I feel this IPO is about 2-3 years too late in the coming.

I agree with you but ,on the preface that you can't time the market, it is what it is.
There are the environmental legislations plus we are entering into a period of time where the Worlwide economic prospects are probably due for a fall.
They were just not geared up for a float 3 years ago which I agree would have been better than now.

[williamp]

I want to buy a share to say I own a bit of the company.

I have never owned any shares before. How do I buy one? Do I get an actual certiticate I can frame?

These may sound daft to red braces wearing types, but I am serious. How can I buy one?

[hornbaek]

That is faily straight forward. If you have a bank account you simply contact your bank / broker and register interest in acquiring a number of shares in the floatation. Given it is a book building exercise you indicate how many shares or how much (amount) you want to invest and unless the offer is oversubscribed you get allocated your number of shares on the day where the price is communicated after the end of the bookbuilding process. This can all be done on-line as well. You simply open an account with somebody like Saxobank etc and you credit your account with money and that will be used to buy the shares. You will receive a share certificate (or in some countries these are purely electronic).

[funboxster]

RobDown said:

I’ve just noticed in that quote that I’ve accidentally put Dec 20th when it should have been Sep 20th

I don’t think you need a log-in Jon. Try this link

https://amlcorp.blob.core.windows.net/default-stor...

Thanks for the link Rob Down

I've just slogged through all 195 pages- Most of the figures go over my head. It was timely to read, following my factory tour yesterday and seeing my cars(DB11) production line and the brute of a V12 up close.

Some interesting items in there inc GM% on DB11's, the Daimler/AMG tie up amongst others.

[Jon39]

raceboy said:

Could almost be tempted to have a very small dabble if they included owners of any old Astons in that, and if the 'dividend' included a few Aston perks, a bit off at the Dealers, fizz and nibble car launch invites, that sort of thing I'd be very tempted, I'm that easily bought.

Dividend. You will be lucky.

As a shareholder, you are entitled to attend the Annual General Meeting though.
You might have to be satisfied with a 'free' coffee, or if a company feels generous towards its owners, possibly a good lunch.
That us usually about it. A few companies do shareholder perks, but it us a bit of a gimmick.
Dividends are only when a company has excess cash, and spending on the next new model will I expect always be AMs priority.

[raceboy]

I never get an invite from Rolls Royce to anything either, other than the AGM. They do pay a dividend twice a year though.

[Jon39]

Snippets from the AML document.

I had thought that I bought my Vantage, because to me it looked beautiful.

It seems now though that I was wrong. It was to do with my emotions and tendencies.
This must be all about Charlotte (DBX) and Marcus (Vantage).

Try choosing the model to fit your own personality.
Nicole is very versatile, but probably keeps bursting into tears.
Perhaps Sarah would be better for me.








FUTURE MODEL PLANS


(tap / click to enlarge)

Edited by Jon39 on Thursday 30th August 14:00

[hornbaek]

To put down a Luxury SUV as ( almost ) a rational buy is really a stretch.

[raceboy]

My names not on the graph, better sell the Vantage and buy a 911

[old phart]

Remember that 'going public' means that. The company will now be beholden to the share owners to turn a profit. And to many shareholders it isn't AML, its just a stock in their portfolio. Please clue me in but would the corporate structure change? Is there a board now and would the same members continue or could a new major shareholder come in and steer it towards his/her vision?

[RobDown]

A lot of the answers to some of these question (ie how customers can buy shares) should be answered in the prospectus

To answer Old Pharts question; keep in mind 75% of the stock will remain with the existing owners, so don’t expect any board or strategic changes near term

The difficulty with shareholder perks is that more often than not shares are now held through nominees. And therefore individual names may not appear on the register which makes offering perks a bit mite cumbersome

But as I said Sep 20th should shed more light

[Jon39]

avinalarf said:

I agree with you but ,on the preface that you can't time the market, it is what it is.
There are the environmental legislations plus we are entering into a period of time where the Worlwide economic prospects are probably due for a fall.
They were just not geared up for a float 3 years ago which I agree would have been better than now.

If there is a big stock market fall, between now and the flotation date, you are correct Steven.
Otherwise I think they have timed this to perfection.
Remember the shareholder(s) selling, would like to achieve the highest possible price.
Three years ago, losses were the norm, so the talked about £5bn market value now, would have been impossible then.

- The first of the seven new models DB11 has been in production for a while.
- The Vantage has been launched, but if the long-term strength of demand should disappoint, that is conveniently an unknown.
- DBSS launch received strong acclaim.
- Excitement is building about Valkyrie. Potential investors will love the prospect of selling £2m cars.
- Several new models including the SUV in prospect.
- Very strong revenue increase last year.
- Investors both large and small can get very excited with IPOs, and a combination of James Bond, talk of submarines and aeroplanes (licence, but forget that), multi-million pound cars which sell instantly, what could be more exciting?
- Reported the first profit full year for some time.
This last point is debatable, but probably not widely known, unless you like delving into accounts.
It might explain why the float is in London and not New York, which was considered, according to the Company.

'Aston Martin spent 224 million pounds on R&D last year (one-quarter of sales) but only 11 million pounds of that was expensed in the profit and loss statement. The rest — some 95 per cent (far above other car manufacturers) — was capitalized on its balance sheet.   If Aston Martin was based in the U.S., where GAAP accounting rules usually prohibit companies from capitalizing R&D costs, it would have reported another full-year loss.' 

Edited by Jon39 on Thursday 30th August 17:25

[hornbaek]

Jon39 said:

If there is a big stock market fall, between now and the flotation date, you are correct Steven.
Otherwise I think they have timed this to perfection.
Remember the shareholder(s) selling, would like to achieve the highest possible price.
Three years ago, losses were the norm, so the talked about £5bn market value now, would have been impossible then.

- The first of the seven new models DB11 has been in production for a while.
- The Vantage has been launched, but if the long-term strength of demand should disappoint, that is conveniently an unknown.
- DBSS launch received strong acclaim.
- Excitement is building about Valkyrie. Potential investors will love the prospect of selling £2m cars.
- Several new models including the SUV in prospect.
- Very strong revenue increase last year.
- Investors both large and small can get very excited with IPOs, and a combination of James Bond, talk of submarines and aeroplanes (licence, but forget that), multi-million pound cars which sell instantly, what could be more exciting?
- Reported the first profit full year for some time.
This last point is debatable, but probably not widely known, unless you like delving into accounts.
It might explain why the float is in London and not New York, which was considered, according to the Company.

'Aston Martin spent 224 million pounds on R&D last year (one-quarter of sales) but only 11 million pounds of that was expensed in the profit and loss statement. The rest — some 95 per cent (far above other car manufacturers) — was capitalized on its balance sheet.   If Aston Martin was based in the U.S., where GAAP accounting rules usually prohibit companies from capitalizing R&D costs, it would have reported another full-year loss.' 

My comment about the timing had to do with the macro environment rather than AML in particular. I completely agree, that the story to sell the stock could not be better as it is today, but the environment into which the offering is made is (probably) at the end of a long bull run for equities. All hypothetical anyway as AML wasn‘t ready before now.
The observation about activating R&D costs on the balance sheet rather than charging them through the P&L as they occur is a good one. I don‘t know what the other car manufacturers do in this respect but the comparison is relevant.

Edited by Jon39 on Thursday 30th August 17:25

[alscar]

Ry
In answer to your question about customer definition I would guess customer would mean anyone that has bought brand new.
Initially the press release mentioned discounted shares on this basis.
I’m hoping as a shareholder that you also get a discount on new cars as well !

[funboxster]

alscar said:

Ry
In answer to your question about customer definition I would guess customer would mean anyone that has bought brand new.
Initially the press release mentioned discounted shares on this basis.
I’m hoping as a shareholder that you also get a discount on new cars as well !

Don't necessarily need to be a shareholder, based on excerpt from page 61 of offer document

Although Aston Martin Lagonda provides a manufacturer’s suggested retail price for all its cars, individual dealers are permitted to negotiate different prices with customers (within set parameters) and to provide financing to those customers.

[avinalarf]

hornbaek said:

Jon39 said:

If there is a big stock market fall, between now and the flotation date, you are correct Steven.
Otherwise I think they have timed this to perfection.
Remember the shareholder(s) selling, would like to achieve the highest possible price.
Three years ago, losses were the norm, so the talked about £5bn market value now, would have been impossible then.

- The first of the seven new models DB11 has been in production for a while.
- The Vantage has been launched, but if the long-term strength of demand should disappoint, that is conveniently an unknown.
- DBSS launch received strong acclaim.
- Excitement is building about Valkyrie. Potential investors will love the prospect of selling £2m cars.
- Several new models including the SUV in prospect.
- Very strong revenue increase last year.
- Investors both large and small can get very excited with IPOs, and a combination of James Bond, talk of submarines and aeroplanes (licence, but forget that), multi-million pound cars which sell instantly, what could be more exciting?
- Reported the first profit full year for some time.
This last point is debatable, but probably not widely known, unless you like delving into accounts.
It might explain why the float is in London and not New York, which was considered, according to the Company.

'Aston Martin spent 224 million pounds on R&D last year (one-quarter of sales) but only 11 million pounds of that was expensed in the profit and loss statement. The rest — some 95 per cent (far above other car manufacturers) — was capitalized on its balance sheet.   If Aston Martin was based in the U.S., where GAAP accounting rules usually prohibit companies from capitalizing R&D costs, it would have reported another full-year loss.' 

My comment about the timing had to do with the macro environment rather than AML in particular. I completely agree, that the story to sell the stock could not be better as it is today, but the environment into which the offering is made is (probably) at the end of a long bull run for equities. All hypothetical anyway as AML wasn‘t ready before now.
The observation about activating R&D costs on the balance sheet rather than charging them through the P&L as they occur is a good one. I don‘t know what the other car manufacturers do in this respect but the comparison is relevant.

Edited by Jon39 on Thursday 30th August 17:25

My comment about the timing was also made in exactly the same context as Hornbaek's.
Otherwise I agree with your comments.

[JulianPH]

avinalarf said:

JulianPH said:

Jon39 said:

Best to use the Steven spelling Julian, otherwise there might be some avinalarf going on.

In that case we are probably talking about a different person!

Cheers Jon, your thread is the best!!!

Edited by JulianPH on Wednesday 29th August 18:44

Oh st, what do I do now?

I know.

Someone has gained access to my account and is posting false comments.

Phew, I think I got away with it!