Bikers' enthusiasm worth £20m listing on AIM

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The Independent Online

Bikenet, an internet site for motorcycle enthusiasts created originally by fans and now half-owned by Dixon Motors, is seeking to list on the Alternative Investment Market with an offer that values the company at around £20m.

Bikenet, an internet site for motorcycle enthusiasts created originally by fans and now half-owned by Dixon Motors, is seeking to list on the Alternative Investment Market with an offer that values the company at around £20m.

The company, selling motorbikes, accessories and insurance online, aims to raise up to £7m from the issue. Shares are expected to be priced between £1 and £2, and bike aficionados will be able to register for shares on the company's website.

BikeNet, which is one of Europe's largest motorbike affinity sites, supplies bikes made by Dixon's subsidiary Carnell Motorcycles. It guarantees to deliver the lowest like-for-like price on its UK bikes.

The move onto AIM reflects the success of similar online car sites. Dixon is already involved in a similar supply arrangement for Jamjar.com. This Direct Line-owned site promises reductions of up to 30 per cent on dealers' prices for cars.

Garry Cuthbertson, chief executive of BikeNet, said yesterday: "The flotation will secure for us first-mover advantage. It will also give us the working capital to increase market share." He said the institutional uptake has already been strong.

Investec Henderson Crosthwaite has been appointed as adviser and broker to the issue, which is being offered to institutional and retail investors from tomorrow.

BikeNet, which was set up in 1995, has seen its website hits grow to 135,000 in June this year.

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