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SRAM IPO on Hold

Published November 29, 2011

TAICHUNG, Taiwan—SRAM has put its plans to go public on the Nasdaq stock exchange on hold until at least next summer while it waits for volatility in the financial market to wane, Jeff Shupe, SRAM’s chief operating officer, said on Tuesday.

Shupe said waiting would also allow SRAM to project its 2013 earnings at the time of the initial public offering based on supplier orders for the following year’s product.

SRAM announced its intentions to go public back in May in order to raise capital to repay anticipated new company debt acquired to pay off the equity assets held by Trilantic Partners, a private equity firm that invested $234.8 million in SRAM in September 2008.

The following month, SRAM consolidated its debt in a new $790 million credit facility, of which $575 million was paid to Trilantic to regain its shares in the company.

SRAM has said it expects the IPO to raise approximately $300 million, but it’s never issued a specific date to list on the market. At this year’s Eurobike trade show, SRAM president Stan Day said going public would lay the financial foundation for future growth and announced his company’s intention to become the leader in urban bike drivetrain components in the next five years through internal gear hubs, external drivetrains for trekking and commuter bikes and a new electric bike drivetrain.

SRAM has not made any public announcement about any potential response to the electronic drivetrain innovations from competitors Shimano and Campagnolo.

—Nicole Formosa
nformosa@bicycleretailer.com

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