October 15, 2021
5,927 investors take part in AS DelfinGroup IPO – proceeds surpass EUR 8 million
AS DelfinGroup initial public offering (IPO) on Nasdaq Riga successfully closes. In total 5,927 investors participated, including 10 institutional investors. This is the largest ever IPO in Latvia in terms of investor activity. Demand reached 73% of the initial base offer (up to 7 300 000 shares) while EUR 8.09 million of gross proceeds were raised as a result of the IPO.
1,146 investors from Latvia subscribed for 1,903,485 IPO shares, 4,584 investors from Estonia - for 3,185,381 shares, 153 investors from Lithuania - for 141,807 shares and 44 investors from other countries - for 88,921. All investors will be allocated the number of shares they subscribed for.
AS DelfinGroup Chairman of the board Didzis Ādmīdiņš: “This has been the largest IPO in Latvia this year and the second largest in the Baltics in terms of both the number of investors as well as the amount of new capital raised. We are therefore thankful to all investors for their confidence in AS DelfinGroup, which will help the company to achieve its long-term goals. Demand from retail investors significantly exceeded our initial expectations and, as a result, AS DelfinGroup IPO has been the largest in the history of Latvia in terms of the number of investors participating. Activity of institutional investors was lower than we initially anticipated, which could be explained by other sizeable deals on Baltic's stock exchanges. AS DelfinGroup new shareholders may expect their first returns on their investment already in December this year, when AS DelfinGroup plans to pay the next quarterly dividend. We expect that the capital raised will allow the company to successfully refinance the liabilities on more favorable terms and, going forward, attract funding with a significantly lower interest rates, as well as continue to grow our business volumes and profitability in line with the announced plans.”
Ivars Bergmanis, LHV Head of institutional markets: “The fact that a company has managed to attract such a robust number of investors suggests that, relatively healthy liquidity of shares could be expected on the secondary market. It would appear that this autumn has been the most active period in the history of Baltic capital markets and the company had to compete with three other public offerings (all from Estonia). It’ s worth mentioning that 77% of AS DelfinGroup investors were from Estonia. The level of financial literacy in Estonia is clearly the highest in the Baltics and active investing in securities there is quite common. The number of the company’s shareholders will be more than 3 times the number of shareholders in the company currently leading in this position on the Main list in Latvia. The company's field of activity will also provide an investor with a rather special opportunity to invest in the theme of Latvia's macroeconomic story, as its activities are closely related to the consumer.”
AS DelfinGroup Chairman of supervisory board and co-founder Agris Evertovskis: "The team has put great effort into this IPO and we are all very pleased about the results. 12 years ago, we were just a start-up with one pawn shop and a vision to provide better and easy to understand much needed financial services which is still in our DNA. Today, from the supervisory board perspective, our main priorities are to increase the value of AS DelfinGroup for the benefit of all shareholders, by ensuring the best strategy for growth, risk governance, and ESG."
LHV Pank’s clients represented 52% of investors, Swedbank Baltic clients – 40%, clients of SEB in the Baltics - 6%, clients of other banks - 2%.
In total, investors subscribed for 5,319,594 new shares and the total number of AS DelfinGroup shares now will be 45,319,594. The price per share was EUR 1,52 and gross proceeds of EUR 8,09 million were raised.
Upon receipt of consent from the management board of Nasdaq Riga trading of AS DelfinGroup shares on the Nasdaq Riga Baltic Main List will commence on 20 October. AS DelfinGroup will be one of 33 Baltic and 4 Latvian companies to be traded on this list.
LHV Pank and the law firm Eversheds Sutherland Bitāns acted as AS DelfinGroup IPO advisors. AS DelfinGroup has signed a market making contract with AS LHV Pank to provide liquidity for shares of AS DelfinGroup. More about market makers: https://nasdaqbaltic.com/market-information/market-makers/
About AS DelfinGroup
AS DelfinGroup is a licenced technology-based financial services company that was established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), as well as sale of pre-owned goods both online and at more than 90 branches across Latvia. On average, 35,000 thousand loans are issued every month and serviced by the professional team of more than 270 AS DelfinGroup employees. The company has a total of over 400,000 registered customers. Since 2014, AS DelfinGroup has been known on the Nasdaq Riga as a bond issuer. The company regularly pays dividends to its shareholders. In 2020, the company's net loan portfolio grew to EUR 34.6 million, while its EBITDA reached EUR 9.3 million, with profits before income tax for dividends of EUR 4.65 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion and facilitating the circular economy. The company has been profitable every year since 2010.