Harley Davidson (HOG.US), the well-known brand of motorcycle manufacturer from the United States is gaining up to 10% in pre-market trading today. This is related to the news that the company intends to spin off its LiveWire brand from its business. LiveWire established in 2019 is electric motorcycle unit. The company will go public through a merger with a special purpose acquisition company (SPAC). Such companies are established mainly to raise capital through IPO. The value of the new company is expected to reach $1.77 billion. The new company is expected to have cash of about $500 million to quickly release its first electric motorcycle model. In addition to Harley Davidson, the strategic partner of the new company is KYMCO, a motorcycle manufacturing company from Taiwan. Harley Davidson is expected to remain a 74% ownership of LiveWire after the spin-off.
After the opening bell, the price may challenge the higher limit of price consolidation near $40 per share. Source: xStation5
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