Kwang Yang Motor Co (光陽工業), which sells gas-powered scooters under the brand KYMCO, yesterday said it is “seriously” studying the feasibility of spinning off its electric scooter unit as a prelude to an initial public offering (IPO), likely overseas, to raise its brand equity worldwide and facilitate its recruitment of top talent.
“Kwang Yang has no plan to go public, but the company is likely to spin off its electric scooter division for an IPO,” Kwang Yang chairman Allen Ko (柯勝峰) said during an interview with a small group of reporters in Taipei.
“We might follow the model of Harley-Davidson Inc, which is to spin off its electric-motorcycle unit, LiveWire, to list the entity publicly,” Ko said.
Photo courtesy of Kwang Yang Motor
TOP MAKER
Founded in 1963, the company has a long history in making gas-fueled scooters.
Kwang Yang has built a strong presence in the nation’s scooter market, holding on to the No. 1 spot for about two decades, with a market share of more than 30 percent.
Kwang Yang’s new electric scooter business, sold under the brand name Ionex, would have greater flexibility and agility in crafting its expansion plans, Ko said.
If the unit is separated from Kwang Yang and is publicly listed, it would find it easier to attract top talent and raise its brand awareness worldwide, he said.
As the company aims to transform itself into the world’s top electric two-wheeler supplier, an overseas listing could be an option, as foreign investors are more willing to assign attractive valuations to start-ups, he said.
It would not happen overnight as it usually takes several years to plan for an IPO, he added.
At the moment, Kwang Yang’s priority is to expand its global footprint, mainly in China, India and Southeast Asia, which are the world’s top three scooter markets, he said
LIVEWIRE INVESTMENT
“It is crucial to build a foothold while the electric scooter market is still in its infancy, if we want to be an industry leader,” Ko said.
Harley-Davidson plans to list its LiveWire division publicly through a merger with AEA-Bridges Impact Corp. Kwang Yang and KYMCO Capital (金庫資本) are to make a combined US$100 million investment in LiveWire.
Kwang Yang expects its partnership with Harley-Davidson to bear fruit in the next two to three years, Ko said.
That meant new electric two-wheelers made via a jointly developed platform would be available in the next few years, he said.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI