(New York) The maker of the legendary Harley-Davidson motorcycles plans to bring its subsidiary of electric vehicles LiveWire to Wall Street, by merging it with another already listed company, at a valuation of around 1.8 billion dollars.
Founded in 1903, the Milwaukee, Wisconsin-based manufacturer relied on electric vehicles a decade ago to attract a younger audience as it grapples with an aging traditional customer base and some consumers are more sensitive. to the environmental impact of their products.
Unveiled in 2014, the LiveWire model has been available since late 2019 at a base price of around $ 30,000. The division that oversees this new activity has been operating as a separate entity since 2019.
Its IPO is expected to bring in 545 million dollars that the group plans to use to accelerate the marketing of motorcycles, invest in the development of new products and improve its production and distribution networks.
By entering Wall Street separately, LiveWire will be able to function as an “agile and innovative company while benefiting from the significant production and distribution capacities of its strategic partners, Harley-Davidson and the Taiwanese motorcycle manufacturer Kymco”, stressed Jochen Zeitz, the boss of Harley-Davidson, quoted in the press release. He will remain boss of LiveWire after the transaction for a period of up to two years.
LiveWire is currently present in North America and Europe, but wants to expand into other markets, including Asia.
The company plans to enter Wall Street through a Spac (special purpose acquisition company), a listed vehicle that merges with a company to allow it to go public more easily than through a traditional listing.
Spac is currently called AEA-Bridges Impact Corp (Abic) and trades under the symbol IMPX on the New York Stock Exchange, but will take the symbol LVW once the transaction is finalized, normally in the first half of 2022.
Harley-Davidson will retain approximately 74% stake in LiveWire, Abic shareholders approximately 17%, the founders of Abic and Kymco approximately 4% respectively.
On the New York Stock Exchange on Monday, Harley-Davidson was still gaining nearly 7% at mid-session after soaring more than 19% shortly after opening.