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DGAP-News: GOVECS AG / Key word (s): IPO

31.08.2018 / 08:00
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Leading e-scooter pioneer GOVECS plans to go public

  • Leading manufacturer of electric scooters is aiming for a listing in the Prime Standard of the Frankfurt Stock Exchange in autumn 2018
  • Use of the proceeds from the issue to continue dynamic growth in the rapidly growing e-scooter market
  • E-scooters are an essential part of future mobility solutions

Munich, August 31, 2018 - GOVECS AG ("GOVECS", "the company"), the leading manufacturer of electric scooters in Europe, is planning an IPO in the regulated market (Prime Standard) of the Frankfurt Stock Exchange in autumn 2018. The company plans to use the proceeds to expand its production, product range and sales structures in order to make optimal use of the excellent growth opportunities in the business-to-business (B2B) target markets, the e-scooter sharing and delivery industries. In addition, GOVECS intends to position itself much more strongly in the private customer business (B2C).

With its high-quality e-scooters, GOVECS contributes to significantly better and more environmentally friendly mobility. Increasing urbanization, stricter CO2Standards, the increased environmental awareness of consumers and the e-mobility trend are spurring the growth of the still young e-scooter market in Europe. Experts expect annual growth rates of over 25 percent for the European market by the year 2026. The demand for this new form of mobility has grown particularly strongly in the last few months. In the first quarter of 2018 alone, according to the trade magazine Visordown, registrations of e-scooters in Europe rose by 51 percent. E-scooter sharing providers in particular are constantly expanding their presence and their fleets.

In total, more than 10,000 GOVECS electric scooters are already providing better air, less traffic jams and less noise in cities. The company is a pioneer in the industry and already has an outstanding market position: three of the four largest e-scooter sharing providers in Europe use GOVECS e-scooters in their fleets. With a market share of 40 percent (global) and 60 percent (Europe), GOVECS is the clear market leader in this area and plans to continue its expansion course in the future.

"Electric scooters are an essential part of future mobility solutions in our metropolises. The development of the e-scooter market in Europe is just beginning and opens up great opportunities for GOVECS. We want to expand our lead as a leading European manufacturer. The IPO helps us that to accelerate planned growth and thereby rise to a new dimension with our scalable business ", says Thomas Grübel, CEO and co-founder of GOVECS.

In 2017 GOVECS more than doubled its turnover to approx. 15 million euros. Based on the current business development and the strong order book, the company expects sales to grow to EUR 24 to 28 million in the current 2018 financial year.

GOVECS produces in its own factory in Wroclaw, Poland, with a current production capacity of up to 15,000 electric scooters per year. The e-scooter manufacturer covers the essential stages of the value chain - from product development and system integration to direct sales and aftermarket services. Over the past few years, GOVECS has acquired extensive expertise in the areas of technology, engineering and design of e-scooters. In this regard, as a technology leader, the company stands out from a large number of competitors who import complete electric scooters from Chinese manufacturers and sell them under their own brand in Europe.


Target markets with excellent growth prospects for e-scooters

Thomas Grübel explains: "With our range of high-quality" Made in Europe "electric scooters, we have positioned ourselves in the market as a premium supplier with the highest quality standards. We have already developed three different e-scooter models that meet and plan the high demands of our customers to continuously expand the product portfolio. "

The focus of GOVECS 'business is currently on the sale of e-scooters to sharing providers. In order to work economically efficiently, sharing providers are increasingly relying on electric scooters from the premium segment when expanding their fleets, as these are characterized by high resilience, reliability and longevity and they also meet the range requirements of the providers. GOVECS benefits from the demanding customer requirements in its "B2S" ("Business-to-Sharing") division. The current customer portfolio includes almost all major European operators of sharing models, such as Cityscoot in France, eCooltra in Spain and Portugal, emmy in Germany and Felyx in the Netherlands.

The second business area includes the sale and rental of electric scooters to food and grocery delivery services such as Delivery Hero, Deliveroo or Takeaway.com and the constantly growing number of restaurants that offer their own delivery service, such as Pizza Hut, Domino's Pizza or Burger King. Since the food delivery service market is growing rapidly due to the rapidly increasing order volumes via online marketplaces, GOVECS also has attractive growth prospects in this "B2D" business area ("Business-to-Delivery"). In addition, other end markets, such as postal and parcel services or delivery services in the consumer goods sector, offer considerable potential for GOVECS 'e-scooter business.

In the third and youngest business field, "B2C" ("Business-to-Consumer"), GOVECS is positioning itself in the high-growth end customer market. In addition to the megatrends mentioned, this is also addressed primarily on the emotional lifestyle level. The "Schwalbe" - a premium product as a new edition of the old GDR cult classic - is currently the prominent flagship product. In addition, GOVECS took over the assets of the established ELMOTO brand in June 2018 and has thus already expanded its product portfolio for private customers. This strategy is to be continued in 2019 with the launch of Elly brand electric scooters, an entry-level model in the mid-price segment. The GOVECS scooters are sold directly online to end customers via the company's own trading platform HappyScooter. In addition to the existing HappyScooter stores in Berlin and Stuttgart, the company plans to open additional touchpoints in Germany and other major European cities.


The IPO serves to finance growth

GOVECS was founded in 2009 and converted into a stock corporation in August 2018. The company's largest shareholders are the family office Dquadrat Equity Partner and the management of GOVECS.

The company plans to first list its shares on the regulated market (Prime Standard) of the Frankfurt Stock Exchange in autumn this year. The public offer should essentially consist of new shares in a capital increase. GOVECS plans to invest the proceeds from the IPO in the expansion of production capacities in Poland in particular. In addition, GOVECS will continuously expand the existing product and service portfolio. Furthermore, strategic initiatives in the business areas "Business-to-Delivery" (B2D) and "Business-to-Customer" (B2C) are to be promoted to further expand this business.

As part of the planned IPO, Bankhaus Lampe and COMMERZBANK will act as "Joint Global Coordinators" and "Joint Bookrunners".


About GOVECS:

The GOVECS Group is the leading manufacturer of electric scooters in Europe and develops pioneering solutions for urban mobility. The company's success is based on high-quality "Made in Europe" products for international sharing platforms and on tailor-made concepts for the fast-growing delivery industry. GOVECS sells electric scooters and accessories in the high-growth private customer segment via its own trading platform HappyScooter. The GOVECS product portfolio currently includes e-scooters from the brands Schwalbe, ELMOTO, GO! S and GO! T.

www.govecs.com


Press contact:

Kirchhoff Consult AG, Nicole Schüttforth, [email protected], +49 40 60 91 86 64

GOVECS AG, Daniele Cesca, [email protected], +49 89 411 09 77 15

 


Disclaimer:

This publication is not intended for direct or indirect distribution or distribution in the United States of America or within the United States of America (including the territories and possessions of any state or the District of Columbia) and may not be distributed to "US persons" (as in Regulation S of the US Securities Act of 1933, as defined from time to time (the "Securities Act") or to publications with a general circulation in the United States of America. This publication is not an offer of securities for sale in the United States of America. Securities of GOVECS AG (the "Company") are not and will not be registered under the Securities Act and may only be registered in the United States of America with prior registration under the Securities Act as amended or without prior registration Sold or offered for purchase due to an exemption. The company does not intend to register the offer of shares in whole or in part in the United States of America or to carry out a public offer in the United States of America.

This announcement is made for informational purposes only and constitutes neither an offer to sell nor a solicitation to buy or subscribe for Company securities. A public offer of Company securities outside of the Federal Republic of Germany ("Germany") and the Grand Duchy of Luxembourg ("Luxembourg" ) does not take place and is not planned. The offer in Germany and Luxembourg is made exclusively through and on the basis of a securities prospectus to be published, which, after approval by the Federal Financial Supervisory Authority (BaFin), is available on the company's business premises and on the company's website (www.govecs.com ) will be available free of charge. An investment decision regarding the publicly offered securities of the company should only be made on the basis of the securities prospectus.

In member states of the European Economic Area ("EEA") except for the Federal Republic of Germany ("Germany") and the Grand Duchy of Luxembourg ("Luxembourg"), this information is intended exclusively for persons and is aimed exclusively at persons who are "qualified investors" in the sense of Article 2 (1) (e) of the Prospectus Directive (Directive 2003/71 / EC and all amendments thereto, including Directive 2010/73 / EU, insofar as these have been implemented in the respective EEA member state) and all relevant implementation measures in the respective EEA -Member State ("Qualified Investors"). In the United Kingdom, this information is only for distribution and is directed only to (i) professional investors within the meaning of Article 19 (5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Disposal" ), or (ii) high net worth companies falling under Article 49 (2) (a) to (d) of the Disposal (each of these persons hereinafter a "Relevant Person"). The Securities are available only to Relevant Persons and any invitation to subscribe for, purchase or otherwise acquire such securities or any offer to do so or any agreement thereon will be entered into only with Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or its contents.

Statements contained herein could constitute "forward-looking statements". Forward-looking statements are identified by words such as "might", "will", "should", "plans", "expects", "anticipates", "estimates", "believes", "intends", "intends to", "intends" "or their negative form or corresponding modifications and comparable terms can be recognized. Forward-looking statements are based on current expectations and contain a number of known and unknown risks, uncertainties and other factors that could cause the actual results, utilization rates, developments and successes of the group or the industry in which it operates, to differ materially from those contained herein or implies. Undue reliance should not be placed on forward-looking statements. The Group will not update or revise the forward-looking statements published here as a result of new information, future events or for any other reason.

08/31/2018 Publication of a Corporate News / Financial News, transmitted by DGAP - a service of EQS Group AG.
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