Aston Martin IPO: Can it Race Past Ferrari?
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What background and context introduce Aston Martin's planned IPO?
With your money briefing, I'm J.R. Whalen at The Wall Street Journal in New York. Aston Martin is one of the fastest, most powerful sports cars on the market. The company hopes it can press the gas pedal and race to the top of the IPO market in October. We'll explain why some on Wall Street aren't convinced. First, these money and market stories you should know. U.S.
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The researchers say the key to getting the greatest satisfaction from luxury goods, however, is to set broad goals about what you hope to get out of these splurges, rather than putting too much emphasis on what they will bring to you in terms of compliments or self-esteem. In the study, participants were asked to measure their happiness at certain intervals after buying a product. The participants reported similar levels of happiness at the time of their purchases But the group with more general goals reported being the happiest as time passed, especially at six weeks after purchase. The same was true for people who purchased and listened to a new song. last year with a $52.8 million mortgage from Goldman Sachs.
CoreLogic says that 233 mega loans are priced between $10 million and $20 million, with balances currently outstanding across the country. 123 of them originated in California, 40 in Florida, and 31 in New York. Real estate experts say that ultra-expensive homebuyers might get financing privately or after the closing to take advantage of the lower rates. But deals are rarely, if ever, contingent upon financing.
Who are you? Bond. James Bond. Good morning. In the James Bond movies, the iconic character helped propel the Aston Martin brand to new heights. And the sports car is known for its powerful engine and will try to rev up the IPO market at a level that would value the company at up to $6.7 billion. Wall Street Journal senior reporter William Boston is with us with details. So, William, this is an aggressive price range that the company is seeking.
Aston Martin is hoping to cash in on the momentum that was created by Ferrari when Fiat IPO'd Ferrari in 2015. The company was very successful, got a very good valuation at the IPO, and the value of the shares have risen since then. And so Aston Martin is hoping that there's still interest out there in standalone sports car shares. that it can cash into.
Now, Aston Martin has attracted its share of skeptics here because people doubt it can replicate the success of Ferrari in terms of profitability and market cap.
Right. The question is whether or not Andy Palmer, the CEO of Aston Martin, can deliver a Ferrari in Aston Martin clothing, so to speak. Ferrari is twice the size of Aston Martin and is more profitable. And so he's facing quite a bit of skepticism in the market that Aston Martin can overcome many of the difficulties that it faces in terms of its size, in terms of getting its costs under control, and become as profitable as Ferrari and therefore justify such a high valuation.
And Aston Martin has gone through a bit of a rebirth of sorts in the last several years.
Mr. Palmer has been incredibly successful at leading the company through a a comprehensive restructuring over the last three years, delivering new models, revamping the whole lineup of models, promising to expand the volume.
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