ALD Automotive launches its IPO
On Friday, ALD Automotive registered with the Autorité des Marchés Financiers (France's Financial Markets Authority) as the first step in the Initial Public Offering (IPO) process, which is expected to be completed by the end of June.
The IPO had already been announced in February by ALD Automotive parent Société Générale. Shares will be listed on Euronext. Sources quoted by Reuters say ALD's valuation would amount to anywhere between €6 and €7 billion.
Considering that the IPO will concern between 20% and 25%the lease company's value, this would be the biggest introduction on the Paris stock exchange since November 2015. It could bring in €1.4 to €1.7 billion for Société Générale.
Managing a global total of 1.4 million vehicles in 41 countries, ALD Automotive is the world's third-largest and Europe's largest lease company. From 2011 to 2016, its fleet grew by 8.4%, its gross margin by 13.6% (to €1.24 billion) and its net profit by 22.9% (to €512 million).
The car leasing and mobility specialist has around 6,000 employees and achieved a turnover of €7.5 billion in 2016. Lease contracts account for 41% of gross margin, services 43% and vehicle remarketing 16%.
By 2019, ALD Automotive aims to grow its fleet by 8 to 10% compared to 2016, to increase its gross margin by the same share, and to increase its net profit by 7%. ALD Automotive plans to distribute 35% to 40% of its profits as dividend.
Image: ALD Automotive
| 12/05/2017 | Eric Gibory