On its first day of listing on the ASX, BikeExchange Ptd Ltd (ASX: BEX) shares jumped 23.1% to a high of 32 cents. However, at the time of writing, the BikeExchange share price has retreated to 26.75 cents, up 2.9% for the day so far.
The company raised $20 million at an issue price of 26 cents per share as part of its initial public offering (IPO). The raising valued the company at a market capitalisation of $76.9 million.
BikeExchange bills itself as a global marketplace for all things bike. Its online cycling marketplace enables brands, retailers and distributors to connect with customers around the world.
And this morning's BikeExchange share price action, at a time when the All Ordinaries Index (ASX: XAO) is down 0.6% for the day, implies many investors believe in the potential of the newly listed company.
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Growth potential in global cycling
BikeExchange operates across eight markets in Australia, Europe, North America and Latin America. According to the company, its addressable global market is over $83 billion.
BikeExchange hosts more 1,500 brands, 1,450 retailers and 600,000 products. It reaches 29 million consumers each year. Globally, the company reported that its marketplace generated over $1.5 billion in sales leads and enquiries value (annualised) in the first half of the 2021 financial year.
Commenting on today's ASX listing, global CEO Mark Watkin said:
Today marks a significant milestone for our business, from its humble beginnings as a concept 14 years ago, to now being a leading global marketplace for all things bike. Our initial public offering will help us to scale our business and support future growth. Cycling, in addition to sport and recreation, is playing an increasing role in mobility and transport globally, as infrastructure and behaviours change…
The funds raised from our initial public offering will be invested in growth initiatives, such as: strategies to convert existing sales leads on our site to e-commerce transactions, increasing the retailer, brand accounts and key partnerships on site, and improving the customer experience through technology and products.
New strategic partnership for BikeExchange
In a busy day for the newly listed BikeExchange, the company also announced a strategic partnership with Latin America-based Auteco Mobility. Auteco is the leading Colombian motorcycle assembler and electric vehicle distributor.
BikeExchange says Auteco's knowledge and network will help scale its business in Colombia and other Latin American countries. BikeExchange has been operating in Columbia since 2017.
Addressing the new strategic partnership, Auteco Mobility board member Daniel Vásquez said:
We believe bicycles will continue to grow in relevance and revolutionise urban transportation as cities world-wide realize the benefits of favouring bicycles over other means of transport, and BikeExchange is uniquely positioned to capture the growth in this trend.
