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 (ASX:BEX) share price chart


 

New partnership unveiled

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.”

 

BikeExchange IPO continues ASX’s positive run in 2021

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.

The best performing stock is WA telco Pentanet (ASX:5GG) which nearly tripled on debut and has held its ground ever since.

Two other solid performers are health stocks TruScreen (ASX:TRU) and Chimeric Therapeutics (ASX:CHM) which are up 77 per cent and 55 per cent respectively.

Code Company Listing Price Current price % MktCap Sector
TRU Truscreen 0.065 0.115 77 $41.7M Health
TRN Torrens Mining 0.2 20 0 $12.6M Resources
FLX Felix Group 0.3 0.365 22 $60.9M Tech
CHM Chimeric Therapeutics 0.2 0.31 55 $37.3M Health
AGC Australian Gold & Copper 0.2 0.195 -2.5 $12.2M Resources
5GG Pentanet 0.25 0.68 172 $119.0M Tech
M24 Mamba Exploration 0.2 0.265 33 $10.0M Resources
OZM OzAurum Resources 0.25 0.21 -16 $10.7M Resources
BEX Bike Exchange 0.26 0.3 15 $35.8M Tech
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