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Highlights
- Harley's electric motorcycle division, LiveWire, will go public through a SPAC merger.
- The deal is valued at around US$1.77 billion.
- LiveWire will merge with AEA-Bridges Impact Corp (IMPX) to go public.
The stocks of Harley-Davidson, Inc. (NYSE:HOG) gained attention from investors Monday, December 13, after the firm announced that its electric-motorcycle division, LiveWire, will go public by a merger with a special purpose acquisition company (SPAC). The firm will have an enterprise valuation of US$1.77 billion.
LiveWire will merge with AEA-Bridges Impact Corp (ABIC) (NYSE:IMPX) and the deal would be funded by the SPAC firm's US$400 million cash held in its trust and an additional US$100 million investment will be funded each by Harley and KYMCO.
The year 2021 has witnessed a flurry of company debuts. Last month, Amazon-backed electric vehicle manufacturer Rivian debuted in the US market with a valuation of more than US$100 billion, marking it as a mammoth IPO in 2021, surpassing Ford and General Motors. Various other companies have also merged with the blank-check companies to go public.
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The increasing awareness about climate change and the global push towards the electric vehicle industry has pushed the sector higher. Harley-Davidson is a motorcycle manufacturing company based in Milwaukee, Wisconsin.
Notably, Harley-Davidson's Chief Executive Officer, Jochen Zeitz would be the chairman of LiveWire for two years after the completion of the deal. Harley will retain an equity interest of around 74% in the firm and the shareholders of ABIC will own around 17%.
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Stock performance and highlights of Harley-Davidson, Inc. (NYSE:HOG):
The stocks of HOG were priced at US$41.62 at 8:54 am ET on December 13, up 13.07% from its previous closing price when it closed at US$36.81. It has a market cap of US$5.66 billion, with a P/E ratio and a forward one-year P/E ratio of 11.31 and 9.39, respectively. Its EPS is US$3.43.
The HOG stock saw the highest price of US$52.06 and the lowest price of US$31.20 in the last 52-week. Its trading volume on December 10 was 1,131,353.
The revenue of the firm was US$1.36 billion in Q3, FY21, an increase of 17% from US$1.16 billion in the same quarter of the previous year. Its net income came in at US$163 million, as compared to US$120 million in Q3, FY20.
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Bottom line:
LiveWire is expected to get listed on the New York Stock Exchange (NYSE) and trade under the ticker symbol "LVW". Harley launched its first electric bike from the LiveWire brand earlier this year. The bike was priced at US$22,000. However, perhaps a decline in interest in bikes as a recreational activity and the higher price of the bike, have affected the company's intention to attract young riders.
Meanwhile, the stocks of AEA-Bridges Impact Corp. (NYSE:IMPX) were up 4.67% at 9:03 am ET on Monday. The stock value of HOG rose 1.83% YTD.
