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This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

An IPO to leave you shaken (not stirred)

A chance of a lifetime for all true petrol-heads and admirers of fine British style. The legendary UK automaker Aston Martin is finally going public after 105 years of making spectacular cars for royalty, movie stars and James Bond himself. Here are the key things to know about the Autumn’s headline IPO.

Without further ado, here’s how you can get in on the action. Full public trading on the London Stock Exchange will begin on Monday, 8 October. However, there is an opportunity to secure earlier access to the exclusive car brand’s shares through a process called “conditional trading”, which begins next week, on 3 October.

Conditional trading is typically open to big investment banks and brokerages in advance of regular retail investors. Has your broker secured access? I’ve been discussing the Aston Martin IPO this week with my clients and most of them were eagerly looking forward to the opportunity to trade the carmaker’s shares starting 3 October on our platform through CFDs (meaning that you don’t pay any stamp duty and only need a 20% deposit).

And here’s the best part. If any force majeure occurs between conditional trading (3 Oct) and full trading (8 Oct) and the IPO is cancelled, early investors don’t have to take a hit to their portfolio (all losses, profits and trading costs are reversed).

And what of the price of the shares? The company itself has set the IPO’s price range between 1750p and 2250p. We might yet see a narrower band closer to the date, but a placement at the top of the proposed range would put Aston Martin within a whisker of joining the UK 100 . A top-of-the-range £5bn capitalisation would make Aston Martin the 91st biggest company on the LSE (as of the time of writing), making it automatically eligible for inclusion into UK 100 list of blue chip stocks at the next quarterly reshuffle.

Could Aston Martin skip the queue all-together and get a fast track entry into UK Index ? By the index’s own rules, any new IPO with a valuation over 1% of the total capitalisation of the UK Index All-Share index can enter the UK 100 immediately. That said, the last time it happened was when Glencore IPO’d in May 2011 at a massive £59.2bn valuation to become the first company in 25 years to get fast-tracked (and only the 3rd such entry ever).

Do you think Aston Martin can be the next company after Glencore to make history? It would certainty take some effort, but the Initial Public Offering for the first homegrown UK automaker in nearly 4 decades has been generating tremendous buzz among traders and retail investors.

The chance to own a part of UK’s industrial legacy, a true icon of British style, is hard to pass by. Our award-winning research team has written an in-depth report on the Aston Martin IPO. Get in touch with me if you are interested in participating in the IPO and want to do your own investigation beforehand.

If you see a trading opportunity on the market, it pays to be prepared and the upcoming IPO might, in fact, be unmissable.

Joe Nguyen, Trader, 28 September 2018

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research

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