Everything you need to know about Aramis Group and its IPO
Oliver Brett June 15, 2021 4:39 AM
Aramis Group is a key player in the booming online used car sector, and owns major brands in France, the UK, Spain and Belgium. It is planning a June 2021 IPO.
What does Aramis Group do?“Reinventing how Europe buys cars,” is the tag-line on the Aramis Group website. The company is recognised as a European leader in the booming sector of online used car sales. It brings together four brands: Aramisauto (France), Cardoen (Belgium), CarSupermarket (UK), and Clicars (Spain).
Aramis claims to sell one car every three minutes and says it has 480,000 customers. It aims to take the pain out of changing cars and pledges to deliver vehicles directly to new customers’ homes within 48 hours.
Its business model is similar to that of Cazoo, which is planning a US IPO later this year.
How does Aramis make money?As with any other second-hand car dealership, Aramis makes money by selling cars for more than it acquires them for. Where Aramis differs is that it does not require overheads such as multiple showrooms dotted around each country it services. Many customers will buy a car they have never seen before simply by making a selection online.
The money Aramis saves on owning significantly less real estate per car sold, and centralising all its marketing services, allows it to invest in a powerful digital offering in a sector that is otherwise somewhat behind the times in that regard.
It further saves money through its very close links with Amsterdam-based Stellantis, the sixth-largest car maker in the world.
Is Aramis profitable?Aramis is indeed a profitable business and has been since its creation in 2001. It has been able to achieve sustainable, strong growth at scale through a highly cost efficient, vertically integrated business model as well. Its proprietary technology and data platform are claimed to have allowed it to further increase its profitability
It delivered profits of a record €38 million, expressed as earnings before interest, taxes, depreciation and amortisation, representing a 4.6% margin.
What is the Aramis business strategy?The majority shareholder of Aramis Group is Stellantis and that will remain the case after the IPO.
Stellantis is a multinational car manufacturer, formed in 2021 on the basis of a 50-50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group. As of May 2021, Stellantis is the sixth-largest automaker worldwide.
The link with Stellantis gives Aramis direct access to a source of used cars with no intermediaries, giving it higher margins.
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By steadily increasing its presence across Europe, Aramis – or rather its associated owned brands - seeks to become the preferred choice for second-hand car buyers within the continent.
It says its refurbished used car offering is “unique” and well placed to meet the strong expected demand of “a rapidly digitising European market of over €400billion in size.”
How much is Aramis worth?On June 8, 2021 Aramis set the price range for its stock market debut, valuing the group at up to 2.3 billion euros.
It hopes to raise between 446 and 481 million euros through its IPO.
Who owns Aramis?
Around 70% of Aramis shares are owned by Stellantis. It will not sell down its shares in the IPO. The sale of stock to Stellantis took place in March 2021 and at the time was cited as a mechanism that would allow Aramis to step up the growth of its UK concern, Car Supermarket.
When is the Aramis Group IPO?
The French public offering is expected to close on June 16, 2021 at 5pm Paris time for orders placed at branches of financial institutions and at 8pm (Paris time) for orders placed online.
The international offering is expected to close on June 17 at 1pm (Paris time). On the same date, the pricing of the offering is expected to take place.
Trading of Aramis Group shares on the regulated market of Euronext Paris is expected to start on June 18.
The indicative price range of both the French public offering and of the international offering is between 23 euros and 28 euros per share.
The initial size of the offering comprises new ordinary shares valued at approximately 250 million euros on top of the sale of six million existing shares by co-founders Nicolas Chartier, Guillaume Paoli and certain minority shareholders for a total initial amount of approximately 388 million euros.
Who are the key personnel at Aramis Group?The leadership group at Aramis consists of the following individuals:
- Nicolas Chartier, co-founder
- Guillaume Paoli, co-founder
- Fabrice Farcot, chief financial officer
- Laurent Salanié, international development director
- Anne-Claire Baschet, chief data officer
- Jean-Michel Berthelier, chief technology officer
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