Harley-Davidson wants to IPO its electric motorcycles

Posted on Dec. 2021 at 18:23Updated 13 Dec. 2021 at 18:47

Barely born, and already listed. This summer, becoming a full-fledged division of Harley-Davidson, LiveWire, the brand dedicated to electric vehicles from the famous motorcycle manufacturer, will soon take the road to the Stock Exchange. Its parent company indicated on Monday that it would soon merge with a SPAC (“Special Purpose Acquisition Company”), these empty shells which allow to enter the markets by sparing the costly commissions of banks and the traditional “road”. show ”.

“Today’s announcement is historic, LiveWire will become the first manufacturer of electric motorcycles to go public in the United States, welcomed in a statement Jochen Zeitz, the boss of the iconic brand. The operation will give it the freedom to finance the development of new products and accelerate their time to market. “

Only one model for sale

The division will merge with AEA-Bridges Impact, an acquisition vehicle that presents itself as geared towards sustainable development. LiveWire is expected to trade on the New York Stock Exchange under the acronym “LVW” and reach a market capitalization of around $ 1.8 billion, says Harley-Davidson.

The operation is unique in that introductions via SPACs are essentially the responsibility of start-ups, and not divisions of large groups. But, for Harley-Davidson, the opportunity is real: the American initially planned to invest between 190 and 250 million dollars each year in electrification, a sustained effort of the economy plans. The listing of LiveWire should ultimately finance its division to the tune of $ 545 million, while the parent company should retain 74% of the capital.

The brand currently only markets one model, the LiveWire One, which has a range of 235 kilometers in urban areas and is sold for $ 22,000, in the United States only to begin with. Shortly after the announcement on Monday, Harley-Davidson’s price rose as much as 18% – its biggest gain in 13 months – before stabilizing around $ 39 at mid-session (+ 6%).

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