Aston Martin shares tumble after London float

Aston Martin begins conditional trading on the London Stock Exchange today

Aston Martin begins conditional trading on the London Stock Exchange today

Shares in the company become available to individual investors on Monday, but the first day of conditional trading posed more questions about whether you should be looking to buy or should leave well alone.

According to The Guardian, James Bond's carmaker of choice had initially indicated that shares would be priced between £17.50 and £22.50.

Depending on where it prices within the range, Aston Martin may just make it into the FTSE 100 after its flotation and will be the first auto maker in the blue-chip index since Jaguar.

On 1 October the price range was narrowed even more to between £18.50 ($24.03) and £20 ($25.98).

British crowd-lending platform Funding Circle is down more than 20 percent since it floated last week - denting the London Stock Exchange's hope of becoming an attractive listing destination for technology companies worth more than $1 billion.

The final price is due to be announced Wednesday morning in London, with shares set to make their trading debut on the London Stock Exchange shortly afterward.

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Shares in Aston Martin Lagonda finally went under the hammer yesterday, but it was an inauspicious introduction to public markets for the luxury carmaker. Operating profits rose 14 per cent to £106m.

The transaction provides for the sale of shares on behalf of its principal owners, the fund Italian Investindustrial, investors, kuwaitis, to Adeem Investments and the investment company Primewagon.

The company, which past year made its first profit since 2010 and has gone bankrupt seven times in its history, was due to begin conditional trading on the London Stock Exchange today.

Aston Martin plans to produce between 7,100 to 7,300 cars next year, increasing that to 9,600 to 9,800 cars in 2020, which will be helped by the introduction of the Varekai SUV.

Palmer said he was "delighted" with the response to the IPO, describing it as a milestone for the company and pledging to deliver on growth plans. It sold 5,117 cars in 2017, while revenue grew 8 percent in the first half this year.

Germany's Daimler AG meanwhile will not sell down its Aston Martin holding as part of the IPO, and will instead convert its non-voting 4.9-per-cent stake to shares.

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