Nearly $370 million is withdrawn by LiveWire investors after the company goes public

Nearly $370 million is withdrawn by LiveWire investors after the company goes public.


imptags : LiveWire, $370 million, $370 million is withdrawn by LiveWire investors, LiveWire investors,

Harley-Davidson LiveWire electric motorcycle has struggled to find an audience since it launched in 2019. While the LiveWire's MSRP of $29,799 may have discouraged many potential buyers, the Motor Company reduced the price when it spun off the nameplate as its own brand. Despite the fact that LiveWire sold out its 100-unit launch edition of the S2 Del Mar in just 18 minutes, that's not a particularly impressive achievement. Following a merger with special purpose acquisition company (SPAC) AEA-Bridges Impact Corp., LiveWire went public on September 27, 2022 to attract more investors.

The SPAC redeemed almost $370M of its original $400M investment after the deal. Moreover, LiveWire's initial $545 million projection failed to materialize as $294M in cash proceeds were raised. LiveWire's (LVWR) share price has decreased by nearly 90 percent since Harley originally planned to retain 74 percent ownership of the company. In addition to the $100M H-D already committed to LiveWire, investment withdrawals forced the company to inject another $100M.Despite what it may seem like from the outside, SPACs have become accustomed to this pattern of investment withdrawal.  It bypasses the conventional IPO process, so founders can communicate with the public and make projections without having to undergo the standard IPO process.


Following a peak in March, 2021, SPACs have seen a sharp decline.SPAC trend has been stifled further by market volatility and regulations have only stifled the SPAC trend even further. A Wall Street Journal report estimates that SPAC withdrawal rates will exceed 80 percent in 2022. Despite this, Harley-Davidson stands behind its all-electric division.

"Most motorcycle manufacturers are sort of dancing around this topic, just like many automakers did when Tesla won," said Harley-Davidson CEO Jochen Zeitz."Most motorcycle manufacturers are sort of dancing around this topic, just like many automakers did when Tesla won," said Harley-Davidson CEO Jochen Zeitz.The comments Zeitz made are true, but LiveWire hasn't nailed down its audience yet. That will make attracting and retaining investors difficult.

Nearly $370 million is withdrawn by LiveWire investors after the company goes public.

imptags : LiveWire, $370 million, $370 million is withdrawn by LiveWire investors, LiveWire investors,

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