Aston Martin and the Saudi Arabia Public Investment Fund

08 July 2022

It appears that Aston Martin is looking for a nine-figure cash injection, the likely sources are an American finance house, or Saudi Arabia’s Public Investment Fund both prepared to invest £200million into the company.

When the news hit the market, Aston’s share price dropped by 14%. Aston’s management stressed that they were simply ‘keeping funding options under review.’

You may recall that the Saudi Arabia Public Investment Fund, aka the sovereign wealth fund, heavily financed the takeover of Newcastle United last year. Additionally, it invested in the controversial LIV Golf Invitational Series by luring players with cash and has been accused of ‘Sportswashing.’

In response to the reports, Aston Martin said: ‘The company regularly keeps its funding options under review. ‘Any funding option, if explored and executed, would support and accelerate the company’s future growth.’

Aston Martin told shareholders its order books are currently ‘robust’ and have ‘strengthened further in recent months. It said its sports cars have sold out into 2023, and order intake for its DBX vehicles is more than 40 per cent ahead of the previous year.

It seems slightly strange. Only four months ago, the chairman, Lawrence Stroll, insisted publicly that Aston Martin did not need external investment. Yet, now they are potentially selling more shares.