Shares in luxury automaker Aston Martin dropped as much as 6.5 percent on their market launch in London on Wednesday as investors and analysts raised issues over its ability to provide an ambitious roll-out of new models.
The company, which last year made its first profit since 2010 and has gone bankrupt no less than seven times, had priced its shares at 19 pounds each, providing it a market capitalization of 4.33 billion pounds ($5.63 billion).
The shares dropped to as low as 17.75 pounds and were below 5 percent at 0935 GMT.
Aston Martin has strategies to launch a new model annually from 2016 to 2022.
“(It) has very aggressive growth plans. The execution of that growth needs to be flawless – nothing eats cash more than a car company when the cycle turns. There is issue that it’s more cyclical than the commentary has been,” stated James Congdon, managing director of cashflow returns specialist Quest.
“The banks have done a good job for their client – but there’s no bounce.”
