The parent company Flix is pushing ahead with its efforts to go public.
(Photo: Reuters)
Frankfurt Probably the best-known German start-up company in the mobility industry is driving the preparations for the planned IPO. Flix, the parent company of Flixbus and Flixtrain, has selected three banks as advisors on the deal, which is planned for the first half of 2024, several people familiar with the situation said.
These are JP Morgan, Goldman Sachs and BNP Paribas. When going on the floor, the company could be valued at around four billion euros, it said. Flix and the banks declined to comment on Tuesday or were initially unavailable.
Flix called financial data for the first time in the spring. After that, the company made it out of the red and achieved a positive operating result before interest, taxes, depreciation and amortization (Ebitda) last year. Flix has not yet given a specific number. Sales increased by 185 percent to a good 1.5 billion euros.
Flix has experienced rapid expansion
Chief Financial Officer Christoph Debus described the past year as the company’s most successful to date. In 2023, sales should increase by at least 20 percent and profitability should continue to improve, it said.
The rise of Flix began with the liberalization of the long-distance bus market in Germany in 2013. Just two years later, the young company started an aggressive growth course and took over rivals such as Mein Fernbus, the European business of the British provider Megabus and Postbus.
At the same time, the company expanded into numerous European countries. In 2019, Flix acquired the Turkish bus company Kamil Koc, followed in 2021 by the US long-distance bus icon Greyhound. In 2017, Flix put the first trains on the tracks, initially in Germany. The green cars are now also on the road in Sweden.
“Asset Light” strategy is well received on the stock market
The company sees itself primarily as a technology provider. Buses or trains are usually provided and operated by partners. Flix takes over route and network planning, sales, customer service and pricing via its platform.
Such an “asset light” strategy is well received on the stock market, after all there are no high material assets and investments in the figures. At the same time, this is what made the rapid growth possible.
The investors have supported and co-financed this so far. Venture capitalists such as General Atlantic, HV Capital, Permira, TCV, Blackrock, Baillie Gifford and Canyon Partners are involved. The three founders André Schwämmlein, Jochen Engert and Daniel Krauss still hold just over 25 percent of the shares. The most recent round of financing of over 650 million dollars took place in the summer of 2021.
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