Harley-Davidson spinoff LiveWire zigzags to loss in NYSE debut
27/09/2022 21:38
(Updates to market close)
** Shares of electric motorcycle brand LiveWire Group Inc
LVWR.N trade in wide range and drop in debut on Tues
** LVWR jumps as much as 23.9% to $11.63, skids to session
low of $8.20 before closing down 12.1% at $8.25
** 1,215,898 shares exchanged hands with VWAP
(volume-weighted avg price) of $9.53, per Refinitiv
** Harley-Davidson HOG.N and special-purpose acquisition
company (SPAC) AEA-Bridges Impact Corp closed SPAC deal,
bringing LiveWire $334 mln
** Harley-Davidson, which retains 74% stake in LiveWire,
said in Dec it would spin off the division in deal valued at
$1.8 bln urn:newsml:reuters.com:*:nL4N30Y2VF
** HOG on Tues edged down 0.1% to $37.10. Shares, down 1.6%
YTD, have climbed 15.6% in past 3 months
** SPACs raise funds solely to acquire a private entity and
take it public. Many cos that have completed SPAC mergers have
seen their stocks collapse amid surging interest rates, extreme
market volatility and high shareholder redemptions
** Some high-profile sponsors, including Chamath
Palihapitiya, have wound down their SPACs after failing to
identify suitable targets, while others scrapped planned tie-ups
urn:newsml:reuters.com:*:nL4N30R36B
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))