Harley-Davidson Inc's (HOG.N) electric motorcycle division, LiveWire will conduct an Initial Public Offering (IPO) through a merger with a special purpose acquisition company (SPAC). The corporate action is said to be worth 1.77 billion US dollars .
According to Reuters, the deal with AEA-Bridges Impact Corp (IMPX.N) will be funded by a $400 million cash check company held in the trust and another $100 million investment from Harley and KYMCO, respectively.
Harley is the latest automotive manufacturer to have an IPO in the electric vehicle industry. Last month, Amazon-backed electric vehicle maker Rivian (RIVN.O) shot past a $100 billion valuation in its market debut after one of the world's giant IPOs in 2021, surpassing Ford and General Motors. Several other leading players in this sector have also joined special purpose acquisition companies to go public.
Broader awareness of climate change is paving the way for automakers to produce greener vehicles in a sector that Tesla has already mastered. Harley shares were up 11.3 percent in premarket trading, while AEA-Bridges shares were up 3.4 percent. Harley Davidson CEO Jochen Zeitz will be chairman of LiveWire for up to two years after the completion of the IPO deal. Harley-Davidson will retain an approximately 74 percent stake in the company and ABIC shareholders will own about 17 percent.
LiveWire is expected to be listed on the New York Stock Exchange under the stock code LVW. Earlier this year, Harley launched its first electric motorcycle from the LiveWire brand for $22,000, in a move aimed at younger, more environmentally conscious riders.