Derby Cycle to float

Germany's biggest bike maker confirms it aims to cash in on e-bike successes
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There were reports earlier this month the company was planning to float and now Derby Cycle Werke of Cloppenburg, Germany, has confirmed it wishes to go public with an IPO. It is seeking to sell 6.48 million shares for $135 million by listing in Frankfurt on February 4th.

Derby Cycle is a market leader in Germany, especially in the e-bikes sector. Its brands include Raleigh, Kalkhoff, Focus and Univega.

The company sold around 430,000 bicycles in 2010; 50,000 were electric bikes.

In the fiscal year 2009-10 Derby Cycle had a turnover of 173 million Euros, of which sales in Germany accounted for 72.6 per cent and the overseas market for 27.4 per cent.

Chief executive Mathias Seidler said the IPO was due to "favourable underlying conditions", especially the buzz around electric bikes.

"Experts are forecasting strong growth in this sector in the coming years in Europe and beyond," said Seidler. 

"We want to benefit from this trend. An IPO would help us to do just that.”

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