Aston Martin raising $660 million in rights issue

STORY: Aston Martin is raising around $660 million in a rights issue.

It comes as major investors including Saudi Arabia's sovereign wealth fund keep faith with the struggling carmaker.

Aston Martin said Monday (September 5) it would issue four new shares at 103 pence apiece for every existing share.

The rights issue is part of a previously announced equity raising worth about $752 million.

It makes Saudi Arabia's Public Investment Fund - or PIF - one of the luxury carmaker's largest shareholders.

The British company said the rights issue was fully committed and underwritten with support from the fund.

It also has backing from chairman Lawrence Stroll's Yew Tree and Mercedes Benz.

Aston Martin said the fundraising will allow the company to lower its debt and invest in new models.

The British carmaker - the favourite of fictional spy James Bond - has burned through cash and been hit by supply chain issues.

Last month it rejected a near $1.5 billion investment proposal that would have handed control of the business to Italy's Investindustrial and China's Geely.

Monday's update did not lead to shareholder excitement, however, as the stock price was down over 12% in early trade.