McLaren Automotive might launch an IPO in 3-5 years, says CEO

Article by Christian A., on June 15, 2017

Interested in becoming one of the stockholders of one of the famed British carmakers, McLaren Automotive? The door to becoming one of the carmaker’s owners could open up as early as 2020 when McLaren might open itself for public ownership.

In an interview with The Times, McLaren Automotive chief executive Mike Flewitt remarked that the company might launch an initial public offering in the next three to five years in a bid to further boost funds. Should this intention come into fruition and the McLaren is listed in the stock market, it would be the second high-end carmaker to launch an IPO in recent history. The first was Ferrari in 2015.

Flewitt quipped that the more successful McLaren becomes, the more attractive it would be for people who wanted to invest into the carmaker. He added that launching an IPO of the company in three to five years is a better route for McLaren.

These statements from McLaren’s top honcho came a few weeks following an announcement by Aston Martin that it was considering floating the company in the stock market. Just like Aston Martin, McLaren could follow the success achieved by Italian supercar maker Ferrari when it was listed on the New York Stock Exchange in 2015. Since then, Ferrari has seen its value surge by around 62 percent. So, in the eyes of both McLaren Automotive and Aston Martin, launching an IPO is such not a bad thing to pursue if they really needed enough funds to bolster their war coffers.

However, this isn’t the first time the McLaren floated the idea of launching an IPO for the sake of increasing investments. In 2011, Executive Chairman for McLaren, Ron Dennis, remarked that supercar manufacturer could open itself up to public investors within five years.

McLaren Automotive is basically the road car business of the McLaren Technology Group, the same company that controls the McLaren Formula One team. Around half (50 percent) of McLaren Technology Group belongs to the Bahraini government. Around a fourth (25 percent) of McLaren Technology Group is owned by Dennis. The remaining 25 percent is held by Saudi businessman Mansour Ojjeh. Flewitt has disclosed that a number of offers to buy McLaren Automotive from McLaren Technology Group have been received, although the current owners have no intention – yet – to divest their hold of the company.

In its present form, McLaren Automotive was only created in 2011, launching its first model in the guise of the 12C. The carmaker posted its fourth consecutive annual profit in 2016, after delivering 3,286 cars in 2016, which is more than double its sales in 2015. McLaren Automotive is eyeing to achieve annual deliveries of 4,500 units.

Source: The Times

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Topics: mclaren, ipo



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