Another bicycle company appears to be preparing its initial public offering. According to various media reports in Italy, bicycle saddle and component manufacturer Selle Royal S.p.A. (also known as Selle Royal Group) has announced plans to aim for the Milan Stock Exchange.

According to international news agency Reuters, the holding company of the Bigolin family behind the group will retain control of the company after the IPO, which includes its own Selle Royal and Fizik brands as well as Brooks (U.K.), Crankbrothers (U.S.) and Pedaled (Japan).

In May 2021, the Italian venture capital and private equity fund company Wise Equity SGR S.p.A. invested in the group. Ever since, the investor has held a 33 percent stake in the bicycle components manufacturer through its Wisequity V Fund. Incidentally, the bicycle tire manufacturer Vittoria Group also runs under the umbrella of the same fund.

The remaining (majority) stake in Selle Royal Group is currently in the hands of the Bigolin Holding named “Dec. 28 1928 Holding S.p.A.,” owned by Selle Royal Group CEO Barbara Bigolin (daughter of company founder Riccardo Bigolin, who died in 2014) and her two sisters Francesca and Lucia Bigolin.

The owners of Selle Royal Group have brought Italian Capital For Progress Advisory S.R.L. on board as financial advisor. Investment bank Equita SIM S.p.A., also of Italy, and international investment bank UBS Europe SE will serve as joint global coordinators for the IPO. According to Reuters, the offering will consist of new and existing shares sold by the two shareholders. However, an exact date for the planned IPO and its size have not yet been disclosed.

What has transpired is that the group is targeting the Euronext Star segment of the Milan Stock Exchange for its planned IPO. This is aimed at smaller and medium-sized companies, “which requires a free float of at least 35 percent and sets stricter regulations on governance and liquidity.“ In fiscal 2020/2021 (ended June 30, 2021), Selle Royal Group posted sales of €205 million. The group recorded a core profit of €36.4 million in the process.