McLaren Group has received a £70mln boost as part of a greater cash-raising plan as it prepares for a potential initial public offer in coming years, according to reports.
The Formula One team and supercar manufacturer was handed the funding by a group of existing shareholders, Sky News reported.
Citing sources, Sky News said the investment was part of a £500mln equity raise to fortify the company’s balance sheet and fund its electric vehicle plans.
For the third quarter to September end 2022, the Surrey-based company said its net debt position stood at £521mln.
Investors in McLaren include the Saudi Arabian sovereign fund, The Public Investment Fund, and Mumtalakat, the Bahrain sovereign fund.
Mumtalakat is the group’s largest investor, owning a nearly 60% stake in McLaren.
Last year, Mumtalakat’s chief executive Khalid Al Rumaihi told Reuters that he expects McLaren to go public within two to three years.
"The automotive side clearly has challenges, but we believe in the company and we think this will be a prime candidate, obviously not at the moment, but in 2 to 3 years for an IPO,” Al Rumaihi told Reuters.
McLaren may be wise to consider the fortunes of competitor Aston Martin Lagonda, however.
The fellow Formula One and supercar manufacturer listed in London in October 2018 with a market cap of £4.3bn.
Since then, fortunes have raced downwards, with the stock losing 93% of its share price, changing hands at 251p compared to 4,054p nearly five years ago.