Shares in Australia's largest motorcycle dealership operator have surged nearly 30 per cent in a strong market debut.
Motorcycle Holdings shares were expected to trade at a premium after the company's $46 million initial public offer attracted strong interest, resulting in investor allocations being scaled back.
Its shares closed at $2.71, up from the issue price of $2.00, boosting the company's market value by $22 million to $102.8 million.
More than six million shares, or about 18 per cent of the company's equity, has changed hands since the shares began trading at 1100 AEST.
Motorcycle Holdings has 34 franchises across Queensland, NSW and the ACT, selling some of the most well known brands including BMW, Harley-Davidson, Yamaha and Suzuki.
It also provides finance, insurance and warranty solutions.
The company operates in a highly fragmented industry and plans to grow organically and through acquisitions.
It has forecast revenue of $213 million in 2015/16, up from $186 million in the previous year, while net profit is expected to rise to $6.9 million.
As part of the market listing, private equity firm Archer Capital's Growth Fund has cut its stake in Motorcycle Holdings to 10 per cent from 61 per cent.
Chief executive David Ahmet's stake came down from 30 per cent to 22 per cent.
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