Cosworth Aims For New York IPO in 2019

Advertisment

On Thursday, Kevin Kalkhoven, the chairman of Cosworth, disclosed that the British automotive engineering company is planning an initial public offering (IPO) in New York as early as 2019. The company is famous for the engines that it once produced for Formula One racing teams.

Cosworth has widened its focus during recent years from manufacturing engines to producing electronics and powertrain technology. Their products include data analytics, car software, and sensors for assisted and autonomous driving.

The stock market floatation would come amidst Cosworth registering sales from new contracts for sensor technologies and hybrid engines.

In a telephone interview,  Kalkhoven said to Reuters: “We will be able to demonstrate our new product revenue and profit potential in real terms after the close of the first quarter in 2019.”

He added: “It’s at that time that we will look to go public.” Kalkhoven acquired Cosworth from Ford Motor Co way back in 2004 with Gerald Forsythe. The pair were the co-owners of the Champ Car World Series.

He spoke after Northampton-based Cosworth revealed a backlog of more than $440 million (£327.8 million) from long-term contracts up until to 2026. The firm also said that it was profitable last year, with record revenue amounting to $72.5 million.

The company also said that it is making a “significant investment” in its first manufacturing centre in the United States that is located in the Detroit area.

Kalkhoven said that the cost of the initial installation of the manufacturing equipment will be around $50 million and the centre will employ with at least 100 engineers, researchers, and scientists.

Cosworth says that it has relationships with big names such as Aston Martin, GM, Haitec, Porsche, and Honda.