There's Only One Way A McLaren IPO Will Happen

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Everything must come together.

McLaren has been on a roll. Last month, the UK supercar company unveiled the latest member of its Ultimate Series, the Elva. A few months prior came the McLaren GT. And earlier this year the Speedtail made its official debut. The busy times are set to continue. However, McLaren CEO Mike Flewitt recently told Reuters the company needs to expand into additional markets as part of its quest toward a potential public offering. "We need to put more cars into Asia," Flewitt said. "The next big ones are India and Russia. We're not in either and probably should be."

A couple of years ago, Flewitt said the owners of the McLaren Group, led by Bahrain's sovereign wealth fund, were interested in an initial public offering by 2025. Given McLaren's new model frequency, you might assume that it could happen even sooner.

2019 McLaren Senna Front View Driving McLaren
2019 McLaren Speedtail Front Angle View McLaren

However, that's not the case. Why? Because all parts of the group, including McLaren Racing and another unit that markets technology, must be making money. Until that happens, no IPO. While some may be anxious to own a piece of McLaren, Flewitt's approach is unquestionably the smart one. Aston Martin, for example, launched its own IPO not long ago and it's so far been a disappointment.

Aston Martin Lagonda Global Holdings has suffered a 59 percent decline. Ferrari NV, however, is up 68 percent this year. Ferrari launched its IPO back in 2015 and has since become the ideal example when it comes to public offerings.

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Dashboard McLaren
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2019 McLaren Speedtail Front Seats McLaren

McLaren is thus able to see what's worked and what hasn't for Ferrari and Aston Martin. In the meantime, Flewitt and his team are busy making final preparations for a new hybrid model featuring new architecture. This is set to debut in the spring, though chances are we'll be seeing it at the 2020 Geneva Motor Show this March.

Front View Driving McLaren
Rear View Driving McLaren
Side View McLaren
Front View McLaren

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