Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Aston Martin shares fall on rights issue

The luxury car manufacturer launched the fundraising to pay down its debt mountain

Shares in Aston Martin Lagonda slumped by 16% on Monday to 405p after the company priced its rights issue at a substantial discount.

The luxury car manufacturer, favoured by James Bond, is launching a four for one rights issue to raise £575.8 million. As such, the company is issuing 559 million shares priced at a 78% discount to last Friday’s closing price.

Aston Martin rights issue to pay down debt

Half of the proceeds will be used to deleverage the company, which has £1.3 billion of debt, as well as invest in new car production. Existing investors Yew Tree Consortium and Mercedes Benz participated in the rights issue, which also brings in Saudi Arabian sovereign wealth fund PIF.

Aston Martin Lagonda told investors that since the Yew Tree Consortium invested in early 2020, the company had made “significant progress to fulfil its vision of becoming the world's most desirable ultra-luxury British performance brand.” It said that the company has also managed to reduce manufacturing costs by 20% per unit and seen a “significant increase in brand awareness, expanding the Group's reach, with 60.5% of customers in the 12 months leading up to June 2022 new to the brand.” The return of Aston Martin to the Formula 1 grid also boosted sales.

Aston Martin still reeling from Covid-19

However, management also acknowledged that the Covid-19 pandemic also had “a significant detrimental impact on the business in 2020, which led to a refinancing at the end of that year,” leaving the company with a “significant debt burden and associated interest costs,” which it wished to solve. The effects of the Ukraine war and supply chain issues have also weighed on the company.

At the half-year results in July, revenues rose by 9% to £541.7 million (from £498.8 million). However, total wholesale volumes fell by 8% to 2,676 units (from 2,901), while losses before tax tripled to £285.4 million from £90.7 million in 2021.

Nevertheless, trading is expected to pick up for the full-year, with free cash flow forecast to turn positive in the second-half. Management anticipate “significant growth on 2021,” with an estimated 8% increase in unit sales and a 50% improvement in adjusted EBITDA (earnings before interest, tax, depreciation and amortisation), boosted by the Aston Martin Valkyrie and DBX707. Its first electric model is due for release in 2025.

However, potential flies in the ointment include the Ukraine war, Covid-19 lockdowns in China, raw material price hikes and logistics and supply chain issues. Charles Coldicott, auto sector analyst at Redburn, told the FT the company may also face relegation from the FTSE 250 later this year.

Shares in the car maker have fallen by 78% this year and currently trade at 434p. The rights issue should solve the debt burden, however even Aston Martin’s customers may not be immune from the cost of living crisis and rampant inflation.

Take your position on 17,000+ shares with the UK’s No.1 platform.* Learn more about trading or investing in shares with us, or open an account to get started today.
* Best trading platform as awarded at the ADVFN International Financial Awards 2022

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" edit-mode="false" style="--live-prices-table-rows:5" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.