ABIC will merge with LiveWire (Harley-Davidson's electric bike division) to construct a new publicly-traded corporation. This common stock will be listed on New York Stock Exchange under "LVW." This new coalition will make Harley-Davidson's LiveWire the first publicly traded electric motorcycle company in the U.S.

Harley-Davidson expects the transaction's net earnings to be $545 million. The brand will use these reserves to accelerate the future of its debut model, generate new products, and enhance global production and distribution. This IPO is escorted by a wealth increase in the shape of a PIPE (Private Investment in Public Equity), with Taiwanese two-wheeler manufacturer Kymco, already a LiveWire partner, implanting $100 million. The transaction will be financed by ABIC's $400 million cash held in trust and a $100 million investment from Harley-Davidson.

Related: A Brief History Of The Harley-Davidson Livewire

What Does This Mean For The Future Of The Harley-Davidson Livewire?

Harley-Davidson will be the majority (74%) shareholder of the company after the transaction is concluded. ABIC shareholders will hold 17%, while ABIC and Kymco founders will own 4% of LiveWire. Jochen Zeitz (Harley-Davidson chairman, president, and CEO) will be the director of LiveWire and will be serving as the CEO for the first two years after the transaction is complete. Harley-Davidson predicts that the joined forces will have an industry value of approximately $1.77 billion when it debuts on the stock exchange.

Jochen Zeitz, Chairman, President, and CEO of Harley-Davidson, said: "Today's announcement is a historic milestone with LiveWire set to become the first publicly traded E.V. motorcycle company in the U.S. By building on Harley-Davidson's 118-year lineage, LiveWire's mission is to be the most desirable electric motorcycle brand in the world, leading the electrification of the sport." He explained: "This transaction will give LiveWire the freedom to fund new product development and accelerate its go-to-market model. LiveWire will be able to operate as an agile and innovative public company while benefiting from the at-scale manufacturing and distribution capabilities of its strategic partners, Harley-Davidson and Kymco."

For reference, in February 2021, Harley-Davidson disclosed its goals to build an electric motorcycle company within its five-year approach "Hardwire." The brand's debut model is the LiveWire One, a relaunched version of the popular LiveWire electric bike at a much lower price. In May, the model name LiveWire was pivoted into an actual brand name. The U.S. launch of the new LiveWire One was initially held in California, New York, and Texas. Beyond the U.S., the LiveWire One will be available starting in 2022.

Related: Harley-Davidson Livewire Vs Tesla Model S Plaid Race Is Far From Shocking

Expanding The LiveWire Portfolio

The LiveWire One is now in production. The following product plan will be the launch of LiveWire S2 Del Mar, named after the California city of the same name. This bike, smaller and lighter than LiveWire One's original model, will be a middleweight offering. It is obviously based on the Arrow platform. The S2 range will be accompanied, logically, by the S3 line-up. LiveWire plans that these models will be scaled-down renditions of the Arrow architecture with smaller batteries and motors, so they can fit into the 'lightweight market.’

ARROW, a modular and scalable E.V. system incorporating a motor and battery with an onboard charger, is the foundation for the future product line. Zeitz stated that Harley designed the E.V. systems to suit the needs of the motorcycle market. He also said spatial constraints and battery weight impact on handling, so holds major importance.

Jochen explained Harley LiveWire could innovate faster by controlling the I.P. of the motor, battery pack, and power electronics. This allows them to avoid the limitations that third-party options make. They can quickly expand vertically and horizontally with the ease of an EV-powered powertrain and the benefits from a modular, scalable architecture. Harley-Davidson can take new models to market quicker with lesser R&D.

LifeWire's latest statement about the IPO plans states that it will be focusing on urban e-motorcycle demands. It will initially establish a brand presence in North America and Europe and then grow into other markets, including Asia. LiveWire argues it will expand its product range while concentrating on the rapidly changing future of electric vehicles. This will guarantee that Harley-Davidson's core elements are shielded by future technology.

SPAC mergers are a popular way for two-wheeled electric vehicle manufacturers to enter the U.S. stock exchange quickly. Gogoro is approaching a similar route with a SPAC, which will take it to the NASDAQ.

LiveWire's declaration of being the first public-listed electric motorcycle firm may need slight explanation. Although Gogoro's electric two-wheelers can travel 50+ mph (80+ km/h), they have been deemed as scooters, rather than motorcycles. Arcimoto's publicly traded three-wheeled Fun Utility Vehicles, legal in most U.S. states, are honestly motorcycles. However, Arcimoto doesn't refer to its vehicles as bikes, so it won't safeguard that tag. HD's LiveWire is sure to be the first electric motorcycle company on Wall Street, compared to others.