Brammo Eyes IPO for 2014/2015?

11/11/2013 @ 8:58 am, by Jensen Beeler7 COMMENTS

Brammo Eyes IPO for 2014/2015? brammo ipo feed me 635x439

It has long been rumored that Brammo, Inc. CEO Craig Bramscher envisions his company heading to Wall Street for an initial public offering one day, but now we are getting our first public words from Bramscher about how he hopes that his Oregonian company can go public in the next year or so.

Quoting remarks made at the Portland Business Journal Power Breakfast, the Sustainable Business Oregon is reporting that Bramscher is targeting late-2014 to mid-2015 for an IPO, with the figure of a $150 million being banded about as a fundraising goal from the public stock offering.

Before that can happen though, Bramscher says he would like to raise a total of $150 million from private investors first, and also bring Brammo into profitability before getting involved with investment bankers. To that latter point, Bramscher is said to be courting the same bankers that brought Tesla Motors onto Wall Street.

Following in the tire tracks of Tesla, Brammo would be the first electric motorcycle company to hit an IPO target; and if successful in that endeavor, it would mark not only a huge milestone for the Oregonian company, but also for the electric motorcycle segment in general.

The company still has a great deal farther to go in building out its dealer network and model lineup. With a clear growth strategy, which doesn’t involve Best Buy stores, it will be tough for Brammo to grow and be sustainable in such a short timeframe, but an IPO down the road isn’t an impossible idea.

Source: Sustainable Business Oregon via AutoBlog Green

Comment:

  1. Andrea says:

    Excuse me guys.. do we have any idea about the number of bikes really sold by Brammo? Someone well informed is saying that really few Empulse have been bought. Maybe it’s only a financial bubble?

  2. digi says:

    No worries Andrea, Tesla has only produced 20k cars and their current stock price is about 1million per car. Things need not make since in the world of wall street.

  3. ross ewich says:

    is that $150 million stated value or real world, practical-use mileage, er.. value?

  4. Anvil says:

    Hmm. Not sure about this. People sometimes view an IPO as a magic potion. Sure, they need capital, but now they’re going to be expected to deliver sales sooner rather than later. Seems like the EV market is still too immature and the technology and infrastructure isn’t there yet.

    Maybe Brammo thinks those things need investment to grow the business, which is true, but $150 million doesn’t seem like nearly enough. My guess is that it’s capital for larger-scale production to improve its economies of scale and lower prices, which would make a more immediate impact.

    As far as I know, all indications say that EV bike sales are still very small and not growing by all that much. If someone has different information, it would be good to know.

    Perhaps Brammo has exhausted its private VC sources or it just can’t raise the amount it thinks it needs.

  5. Arclite says:

    Once the big four unleash their EV bikes companies like Brammo, Zero, BRD, and the various other boutique makers may be a thing of the past.

    Yamaha in particular has put out some impressive concept pictures that suggest they’re close to producing something almost as cool as BRD’s supermoto concept.

    EVs are all the rage in Japan (and SE Asia for that matter); having just come from there and ridden EV scooters and bicycles, I’ll wait till the big four put their models on the road.

    I certainly appreciate the innovation, courage, and exclusivity of Brammo and the rest of the small scale EV makers, but their bikes and their IPO will be immaterial in a few years.

  6. paulus says:

    The IPO benefits the current stakeholders the most. Their shares making huge initial value gains at the IPO.
    Some unscrupulous individuals could just immediately sell and bail out… just saying.

  7. smokin'joe says:

    As Paulus just said: beware self enrichment via IPO’s. If you like walking on thin ice, or being unable to swim, or suffer and endure a huge financial loss from a ‘decision from the heart rather than the head’…..GO FOR IT! There are far better places to invest.