You can now own more then just speed parts from Holley performance, you can own stock in your favorite aftermarket parts supplier. That’s right on July 19 th of 2021 Holley performance went public on the New Yorke stock exchange under the ticker “HLLY”. After the dust has settled and the deals have been made it priced Holley Performance at a staggering $1.55 Billion dollars. That’s a heck of a lot of carburetors!
Taking a company public may seem like a negative thing to some people. This will mean that the company is working to please steak holders rather then the customer. Thankfully we have seen some reassuring things that lead us to believe that Holley will still push the cutting edge for the automotive aftermarket and serve its customers. To start CEO Tom Tomlinson said “As we look to the future, we will remain relentlessly focused on our performance automotive enthusiast community, innovative and exciting new product, and accretive M&A”
Its not all talk either, back in April 2021 after it was announced that Holley would be going public, Holley bought substantially all of the asset of AEM (Advanced Engine Management, Inc). Another company well known for electronic systems for motor controls. To me this shows a drive to continue innovating and collaborating with other companies in the industry..
Is Holley Taking Over The Automotive Aftermarket?
Although it may feel like Holley is taking over the world in terms of buying up all kinds of other automotive companies, I still think the industry is healthy overall. Holley has acquired a long list of companies to build what it calls a “full package” offering to customers. Companies now under Holley’s majority control include MSD, Hooker Headers, Weiand, Earl’s Performance Plumbing, Mr. Gasket, and many, many more!
What is Holley Selling For On The Open Market?
When most companies go public there is an IPO or Initial Public Offering. This a lengthy process that involves banks and underwriters and lots of money and time. Holley skipped the line so to speak by an acquisition with Empower Ltd via a SPAC. So, with no real IPO the company started out at $9.75. After going public we saw a short dip in price only to gain value up to $11.69 as of 7/23/2021. Holley Performance goes public via SPAC
Holley Performance goes public via SPAC
If you really want to learn how SPAC’s work check out this article on Fidelitys website.
A SPAC is like a cheat code for making the jump from private to public for a company. A SPAC is a company that more or less only exists on paper. They have nothing more than money in the bank. The SPAC does the hard work of going public, then they go shopping. They look for companies, in this case Holley Performance. Then they can work out a deal to buy the whole company. So more or less what happens is this company Empower Ltd bought Holley. Since Empower Ltd is a public company that means Holley is now a public company. Since the SPAC was really just a “Made up” company they just disappear, and Holley is left on the New York Stock exchange. Of cores the parent company (Empower Ltd) doesn’t really disappear, it was never really there to begin with. Only the money was there and who ever was invested in or involved with Empower Ltd walked away with pockets full of cash.
This is a hugely over simplified break down of what happened so please go read up on this for yourself!
This is a hugely over simplified break down of what happened so please go read up on this for yourself! So this will most definitely be a stock ticker to watch if you are a automotive
