(Reuters) – Aston Martin said on Wednesday all the shares available in its 125-million-pound ($162.91 million) capital raise have been placed or subscribed, as the loss-making carmaker aims to turnaround its business.
Shares in the company jumped 12.8% to 61.5 pence by 0834 GMT after it said on Tuesday Daimler unit Mercedes-Benz would lift its stake in the British carmaker to up to 20% by 2023.
The companies also agreed to expand an existing supply agreement, giving Aston Martin access to key Mercedes’ technology, including hybrid and electric drive systems.
“The deal, it is hoped, will break the boom and bust cycle that has been a staple of this iconic UK brand,” CMC Markets Michael Hewson said.
The British company also said it was targeting production volumes of about 10,000 units, revenues of about 2 billion pounds and adjusted core profit of 500 million pounds by financial years 2024 or 2025.
Aston Martin, popular for being James Bond’s carmaker of choice, has suffered a torrid time since it floated two years ago, with its shares losing two-thirds of their value this year.
Permian Investment Partners, Zelon Holdings, Yew Tree Overseas and other institutional investors have subscribed for the capital raise, which represents about 13.7% of the company’s shares, Aston Martin said.
($1 = 0.7673 pounds)
Reporting by Tanishaa Nadkar in Bengaluru; editing by Uttaresh.V, Aditya Soni