Mitteldeutsche Fahrradwerke, a German bicycle manufacturer plans to launch the countrys first IPO in two years. The company plans to raise 14 million and will be listed on the Frankfurt Stock Exchange.
The five-day IPO involves 1.5 million shares at 9.25 apiece. The current equal co-owners, the Peter Wicht family and the Michael Lehmann family, will reduce their ownership to 37.5% each, while selling 25% of the company for the IPO.
The company says it can produce up to one million bikes a year, but last year produced 535,000 bikes for revenues of 63.3 million ($71.5 mm), a 77.3% increase from 35.7 million ($33.0 mm) in 2000.
EBIT 2003 came to 5.58 million ($6.3 mm), a 339% increase in Euros from 1.3 million ($1.2 mm). The Return on Sales is up 530 basis points to 8.8% from 3.5% of sales in 2000. Net Income in 2003 was 2.7 million ($3.1 mm).
Revenues for 2004 are expected to exceed 70 million ($85.1 mm), and EBIT is forecast above 7.8 million ($9.5 mm). Management said that it plans to pay out 40% to 50% of net income in the form of dividends to shareholders in the future, and the company plans to double revenues in the “medium term.”
Mitteldeutsche Fahrradwerke is known primarily for its unbranded bikes which sell through German supermarkets, but it also services the German specialty dealers through the brand names MIFA and Germatec. The company is headquartered in Sangershausen in the eastern German state of Saxony-Anhalt.
