IPO Watch: BikeExchange continues the run of ASX debutantes gaining in 2021
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The IPO of BikeExchange (ASX:BEX) has completed this morning and has become the latest in 2021 to gain on debut.
The company claims to be the world’s largest global cycling market place. It makes revenue through a subscription model, making retailers and brands pay to reach its 39.2 million customers.
In FY2020 the company had $12.3 million in bike sales – $6.2 million in the fourth quarter. In the first half of FY21, ecommerce transactions grew by 154 per cent compared to the prior corresponding period.
BikeExchange is the second ASX stock to be involved in the cycling trade, the first being Cycliq (ASX:CYQ) which makes bike accessories such as cameras and lights.
The company raised $20 million at 26 cents per share.
Upon debut at 11am (AEDT) BikeExchange shares rose to 30 cents which was a 15 per cent premium to its IPO price.
BikeExchange chose this morning to unveil its latest strategic partnership, with Colombian motorcycle and e-bike company Auteco which is also an investor in the company.
BikeExchange CEO Mark Watkin said Colombia and the broader Latin America market was “a key contributor to our growth plans for the business”.
“This partnership with Auteco is extremely exciting as e-bikes and mobility as a whole will play a key part in our collective success,” he said.
“We look forward to working with Daniel [Vasquez], Jose [Fernando Vasquez] and the Auteco team and the significant experience they have in the category and region.”
Commenting on today’s IPO, Watkin said it was a significant milestone for his business.
“Our initial public offering will help us scale our business and support future growth,” he said.
“Our ambition is simple: to help as many people around the world to purchase a bike or related product by connecting them with retailers and brands on our sites.”
While the BikeExchange IPO isn’t the most spectacular gain of 2021, it does continue the positive record of ASX debutantes in 2021.
To date it is the ninth ASX IPO of this year as well as the third in as many days. The average gain of all these stocks is 40 per cent and all but two have gained.