Successful IPO of Derby Cycle AG

Derby Cycle AG, in terms of revenues the largest bike manufacturer in Germany and one of the leading manufacturers in Europe, successfully listed on the stock exchange. Derby Cycle AG’s initial listed price was EUR 13.15, around 5% above the fixed issue price of EUR 12.50. The IPO on the Frankfurt Stock Exchange (Prime Standard) was arranged by equinet Bank AG and BHF-BANK AG as joint lead managers and joint bookrunners as well as M.M. Warburg as co-manager.

The placement volume amounts to EUR 76.1 million and comprises 6,090,000 shares including the over-allotment. Of these shares, 4,590,000 shares derive from the selling shareholders’ holdings (including the over-allotment of 792,175 shares). Despite the oversubscription, the selling shareholder Finatem has decided to retain an interest of 750,000 shares resp. 10% of the company’s share capital, in order to participate in the future growth of Derby Cycle. An amount of EUR 18.8 million accrues to Derby Cycle AG as gross issue proceeds arising from the capital increase. The company’s share capital was increased by EUR 1,500,000 to EUR 7,500,000. Approximately 96.6% of the shares placed were allocated to institutional investors and 3.4% to private investors.

Based on the total of 7,500,000 shares admitted to trading and the initial listed price of EUR 13.15, the company’s market capitalisation amounted to EUR 98.6 million at its market debut. After the offering has been fully completed and the over-allotment option has been fully exercised, the free float will amount to 81.2%, or to 70.6% excluding the exercise of the over-allotment option.

The Derby Cycle Group’s top-quality product range includes e-bikes, sport bikes for leisure cycling and competition, and comfort bikes for every day and travel use. These are sold using the well-established brands of Kalkhoff, Focus, Raleigh, Univega and Rixe. Derby Cycle sells models under each of its brands that are tailored to different target groups. All of the models are developed in Germany, the frames are made by contract manufacturers in Asia, the further components, such as forks, rechargeable batteries and gears are bought in and assembled in Cloppenburg. Derby Cycle attaches great value to the high quality of its bicycles and a differentiated brand presence. This allows Derby Cycle to sell its products via specialist retailers, who offer their customers professional advice and extensive service. They are thus the most important sales channel for normal bicycles and e-bikes.

In fiscal year 2009/2010 Derby Cycle recorded revenues of EUR 173 million with an average of approx. 550 employees. Of this figure, it recorded 72.6% in Germany and 27.4% abroad. Derby Cycle sold a total of around 430,000 bicycles last fiscal year, including around 44,000 e-bikes.