Aston Martin's second largest shareholder is Saudi Arabia.
Aston Martin has turned to equity financing to pay down its debt and spur investment in future products, in the process acquiring a Saudi Arabian sovereign wealth fund known as the Public Investment Fund as a major shareholder.
In a deal announced Friday, Aston Martin will raise EGP 653 million ($773 million), with an initial investment of EGP 78 million from Saudi Arabia and the remainder from a separate new share issue. Once the deal is completed, Saudi Arabia will own 16.7% of Aston Martin, behind Yu Tree's 18.3% and ahead of Mercedes-Benz's 9.7%. Saudi Arabia will also gain two seats on Aston Martin's board of directors.
Saudi Arabia has been increasing its investment in the automotive sector in recent years to reduce its dependence on oil exports. Saudi Arabia has invested in niche brands such as Pagani and Lucid. It is also a major investor in Uber.
Half of the funds raised will be used to reduce Aston Martin's debt, which stood at 957 million British pounds at the end of March. The remainder will be used for product development and a cash pile to ensure liquidity in case of economic shocks.
New products in the pipeline include an updated front-engine sports car due in 2023, a plug-in hybrid (possibly the Valhalla Hypercar) in 2024, and an electric car in 2025; the EV is confirmed as a sports car, while the SUV will be a hybrid car in 2026. An electric SUV is expected to follow in 2026. Further variants of the DBX are planned, along with a mid-engine supercar, the Vanquish.
The company also aims for annual sales of more than 6,660 units, with a long-term goal of 10,000 units per year; in the first half of 2022, sales totaled 2,676 units, down from 2,901 in the previous year.
Despite much fanfare, including new products and a return to F1 with a factory team, Aston Martin has struggled since the pandemic broke out. To turn things around, the company has hired former Ferrari executives, including Amedeo Felisa as CEO and Roberto Fedeli as CTO. Felisa and Fedeli held the same roles at Ferrari.
