ALD launches biggest IPO on Paris stock exchange since 2015
15 May 2017
15 May 2017
Europe’s largest leasing and mobility company ALD Automotive launched on Friday the first step in its IPO (Initial Public Offering) strategy, with shares to be listed on the Euronext stock exchange.
The IPO is expected to be completed by the end of June, and with it representing 20-25% of the company’s value, this will be the largest introduction on the Paris stock exchange since November 2015. Reuters sources estimate ALD’s valuation would be in the region of €6-9 billion.
The move could generate €1.4-1.7 billion for ALD-owner, the Paris-headquartered bank Société Générale.
ALD Automotive is the world’s third-largest leasing company, and is growing strongly, with its fleet growing 8.4% between 2011 and 2016. Over this period, its gross margin rose by 13.6% to €1.24 billion, with net profit up 22.9% to €0.51 billion. It has 6,000 employees and 2016 turnover reached €7.5 billion. It is aiming to continue this trend, growing its fleet by 8-10% between 2016 and 2019.
ALD recently moved into consumer car financing. It is partnering with Paris-based BlaBlaCar to offer Opel models through ALD’s leasing units on competitive zero-deposit terms to some of BlaBlaCar’s French drivers.
However, services are now the largest proportion of ALD’s gross margin at 43% – mirroring the shifts in the industry towards mobility services. Lease contracts account for 41% of the margin, with vehicle remarketing currently only a nascent segment at 16%.
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