The $20 million IPO of online cycling marketplace BikeExchange Ltd hit the ASX today with an initial surge in value before crashing out to end the day down more than 11% on the 26 cents issue price.
The shares (ASX: BEX) jumped 23.1% to hit 32 cents after the company announced ahead of its debut that it has signed a strategic partnership with the Latin American venture Auteco Mobility to expand the BikeExchange platform through Colombia and Latin America. Auteco invested in the IPO.
BikeExchange started Tuesday with a market capitalisation of $76.9 million following the float. Founded in Melbourne in 2007, the business now operates in eight markets including Australia, Europe, North America and Latin America, with an audience of more than 29 million consumers connected to more than 1,500 brands, 1,450 retailers and over 600,000 products globally.
The company posted FY20 sales of $12.3 million in bike sales, with more than half of that figure ($6.2m) coming in the fourth quarter. Emcommerce transactions in H1 FY21 jumped by 154% on the same period 12 months ago.
“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 CEO Mark Watkin.
“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.”
Watkin said the IPO’s cash injection will be used to invest 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.