Initial Public Offering
BikeExchange Limited ('BikeExchange' or 'Company') is an online marketplace that operates globally in eight countries across four geographical areas. The marketplace provides an efficient, technology‑driven platform to connect consumers with retailers of bicycle products and accessories through a convenient, transparent and efficient platform.
The BikeExchange Group has a network of brands, retailers and distributors that come together in a single destination marketplace and between FY18‑FY20 originated more than $26.6 million in Total Transaction Revenue ("TTV"). During the 12‑month period from October 2019 to September 2020, the BikeExchange Platform was visited by approximately 25.1 million consumers. This traffic drove e‑commerce transactions and delivered approximately $1.05 billion of inventory and sales leads to retailers and brands globally. BikeExchange currently has over 1,450 retailers and over 1,500 brands globally available on the platform providing ease, convenience and choice for consumers.
- The world's largest network of cycling (and accessories) focussed marketplaces
- Largest omni‑channel operator in Australia supporting cycling retailers and brands.
- Multi‑region operations with unique leading cycling focussed marketplace positioning in markets with strong and growing cycling audiences. Global annualised traffic of 25.1 million sessions.
- Strong industry fundamentals - the cycling revolution growth
- Cycling infrastructure planning and investment accelerating across the globe.
- Strong growth in cycling activity across active transport and recreational usage - further increasing the cycling market size with new audience in the cycling masses.
- Market development is consumer driven with awareness of environmental, health and convenience benefits and positive impacts of cycling.
- Marketplace model - capital light, and has potential for strong operating margins
- Supports a highly fragmented market of retailers, brands and distributors.
- Established, proven model with significant growth opportunities available across both geographies and market product categories.
- Supports both e‑commerce transactions and sales lead generation for retailers and brands.
- Scalable market leading technology platform purpose built for BikeExchange with low capex requirements going forward.
- Diversified business model with multiple revenue streams in multiple geographies
- Strong revenue streams with good organic growth potential, including recurring subscription revenues and commission based e‑commerce revenues.
- Model driven by data and insights driving value from industry and consumer behaviour.
- Geographical market growth in current regions with the opportunity to replicate in new adjacent countries.
- Attractive financial metrics (gross margins, low CAC, AOV)
- E-commerce transaction value growth of 68% in FY20, AOV increased by 58% in FY20.
- FY20 TTV of $12.3m, Q4 FY20 of $6.2m.
- Business has achieved growth without large amount of capital being invested to date.
- Experienced Board and Management team
- Highly experienced senior management team with global experience and key management in key geographic areas.
- At Completion, the Company will have an experienced board of directors.
Refer to Section 1.4 of the Prospectus for more information on investment highlights
Issuer: BikeExchange Limited
Transaction: Initial Public Offer
Morgans Role: Lead Manager & Underwriter
Offer Price: $0.26
Offer Size: $20.0 million
Offer Opens: Tuesday, 29 December 2020
Offer Closes: Monday, 25 January 2021
Company website: https://www.bikeexchange.automic.com.au/
If you have any questions about the Offer, please contact your Morgans adviser, call 134 226 or find your nearest office.
BikeExchange Limited shares are being offered only in Australia and the Prospectus will only constitute an offer to a person receiving it in Australia. Not for distribution, directly or indirectly, in the United States or to, or for the account or benefit of, US Persons, except in accordance with an available exemption from the registration requirements of the US Securities Act. The distribution of the Prospectus (including an electronic copy) in jurisdictions outside Australia may be restricted by law.
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