LONDON (Reuters) – Aston Martin is raising 575 £800,000 ($432 through a rights issue ) million) major investors including Saudi Arabia’s sovereign wealth fund have maintained their confidence in the troubled British luxury carmaker.
The -year-old company said on Monday that it will start at 653 Issuance of four new shares at a penny for each existing share. At GMT 432, the stock price fell at 432 10% .9 pence.
The rights issue is part of a previously announced 653 £800,000 equity financing, which sees Saudi Arabia’s Public Investment Fund (PIF) among the One of the company’s largest shareholders.
Aston Martin said the rights issue was fully committed and underwritten with the backing of PIF and Chairman Lawrence Stroll’s yew and Mercedes-Benz.
The company said the financing will allow the company to reduce debt and invest in new models.
Formula 1 team owners have been burning cash and being hit by supply chain hurdles. It tripled its pre-tax half-year loss in July.
The company rejected a £1.3 billion investment proposal that would hand over control of the business to Italian investor Investindustrial and Chinese carmaker Geely during the month.
“With or without financing, Aston Martin’s fundamentals remain shaky,” said Victoria Scholar, head of investment at Interactive Investments, of the first half of the year.
She said the recent fall in the pound could spark interest from foreign buyers.
($1=0.8728 pound sterling)