BikeExchange IPO on Australian exchange has steady start

Having debuted on the Australian stock exchange this week, bike resale giant BikeExchange is off to a steady start with early investors taking the stock from its issue price of 26 cents to a high of 28 cents, retreating to 26.76 by close.

Having raised $20 million at its issue price on the initial public offering the company’s value by market cap is now in the region of $77 million. The ASX code is BEX.

Present in eight countries – spanning Europe, Australia, North and Latin America – the online marketplace lays claim to hosting more than 1,500 brands and 600,000+ products. Forming a significant part of the BikeExchange supply, 1,450 retailers are said to take advantage of listing products with the online giant. According to the company, that global network “has an addressable global market of over $83 billion.”

The timing of its IPO may be deemed particularly smart given the ongoing global shortage of new bicycles filtering through the supply chain, though the listing has, as yet, not generated a huge amount of press coverage as is typical with public offerings.

In terms of numbers to date, the marketplace has apparently generated over $1.5 billion sales leads and inquiries value in H1 FY21 annualized. Half of these revenues stem from its “scalable” subscription model offered to both stores and bike brands, which gives access to the buying consumer.

“Our business model provides a low-cost entry for retailers and brands, to showcase their products online and tap into a growing and focussed global audience,” said, Global Chief Executive Officer Mark Watkin.

Watkin added: “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 behaviors change.

“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 revealed that its global online reach extends to 29.1 million consumers seeking bikes each year. Proceeds from the IPO are to be used to invest into growth initiatives and tap into the strong demand that currently exists in the marketplace for bikes of all styles.

“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 eCommerce transactions, increasing the retailer, brand accounts and key partnerships on-site, and improving the customer experience through technology and products.”

“We are excited about the future prospects of BikeExchange. Our business is strongly positioned to benefit from key long-term global trends such as the movement for greener modes of transport, continued growth in consumers shopping online, and, health and wellbeing trends.”

“We are pleased to have the opportunity to welcome new investors to share in this exciting journey,” Mark Watkin said.