Bike24 opens slightly above offer price in stock market debut

FILE PHOTO: A person rides a bike at the Tempelhofer Feld, as the spread of the coronavirus disease (COVID-19) continues, in Berlin, Germany, May 9, 2021. REUTERS/Christian Mang/File Photo

BERLIN (Reuters) - Shares in German online bicycle dealership Bike24 opened 2% above its offer price in its stock market debut on Friday.

Bike24 opened at 15.3 euros ($18.26) per share, compared to its offer price of 15 euros apiece, valuing the Dresden-based company at more than 670 million euros.

The COVID-19 pandemic has prompted a cycling boom, with many people buying bikes to exercise or to avoid the risk of infection on buses or trains.

The company has achieved growth rates averaging 30% in recent years and last year posted earnings before interest and tax of 10 million euros in 2020 on revenues of 199 million.

It is the latest in a flurry of retail IPOs, with fashion e-tailer About You listing earlier this month, following on from online used car deal Auto 1 earlier this year. Online eyewear retailer Mister Spex also plans to float early next month.

Bike24 intends to use the proceeds to expand its infrastructure domestically and abroad and to refinance existing bank liabilities.

Investment banks Berenberg and JP Morgan are advising on the initial public offering for Bike24.

($1 = 0.8377 euros)

Writing by Caroline Copley; Editing by Riham Alkousaa