Bike24 share price rises on the occasion of the stock market launch

Another young company successfully made it onto the Frankfurt floor. The supply of new shares for investors is rolling this year.

Stage goal reached: Andres Martin-Birner (left), founder of Bike24, and CFO Timm Armbrust in front of the stock exchange building in downtown Frankfurt.

Dhe Dresden online bicycle retailer Bike24 has made a successful debut on the Frankfurt Stock Exchange. The shares rose on Friday by up to seven percent to 16.08 euros after the first price had been determined at 15.30 euros.

Bike24 is the first of more than a dozen newcomers this year to celebrate its first listing “live” on the Frankfurt stock exchange – everyone else switched to virtual events because of the corona pandemic. Company founder and CEO Andres Martin-Birner rang the stock exchange bell together with the representative of the previous majority owner Riverside, Michael Weber.

For the US financial investor, who specializes in young, medium-sized companies, it was the first IPO in Germany. “We are very satisfied with this result, which was achieved in a very competitive stock market environment,” said Senior Partner Weber of the Reuters news agency.

The Bike24 shares were issued at 15 euros, at the lower end of the range, which went up to 19 euros. The issue brought in 322 million euros. “We believe that the IPO is the right way for Bike24,” said Weber. “Only in this way was the company able to secure an equity investment of 100 million euros.”

Bike24 wants to use the fresh money to finance expansion into other European countries such as France and Italy. Last year sales were just under 200 million euros. “I am sure that Bike24 will continue to grow strongly and that it will achieve its goal of becoming Europe’s leading e-commerce platform for everything to do with bicycles,” said Weber.

Riverside first joined Bike24 in 2015, but later sold the company to the financial investor Bridgestone, who wanted to merge it with competitor Wiggle. After the failure of the merger plans, Riverside accessed a second time in 2019. With the IPO, the investor will reduce its stake to 35 from 80 percent. The Berlin venture capital investor Rocket Internet, who was indirectly involved in Bike24, used the IPO to increase. Almost a quarter of the issue volume went to three Rocket units, which according to Bike24 adds up to twelve percent. The founders around Martin-Birner hold a good 16 percent.