September 26, 2022
The offer period for DelfinGroup shares has started on Nasdaq Riga stock exchange
On Monday, September 26, the Nasdaq Riga stock exchange started the offer period for the shares of AS DelfinGroup shareholders. Investors from Latvia, Estonia and Lithuania will be able to submit for purchase public offerings' shares until October 5 (including). Investors will have the opportunity to purchase part of the shares presently owned by the two largest shareholders of DelfinGroup – SIA L24 Finance and SIA EC finance. Shareholders will sell up to 5.4 million shares of DelfinGroup within the public offerings, i.e., up to 11.92% of all DelfinGroup shares. The price per share is EUR 1.44.
The Latvian Financial and Capital Market Commission (FCMC) approved both prospectuses of the public offerings of shares on September 20. According to the prospectuses, L24 Finance will offer up to 3.65 million shares, and EC finance – up to 1.75 million shares. The announcement of the results of the public offerings is scheduled for October 10, while the transfer of the purchased shares, or the execution of the offer, is planned on October 12. Offer shares will be allocated proportionately (pro-rata) to the purchase undertakings received during the offer period.
The share price on the stock exchange on the day of approval of the prospectuses was EUR 1.516. However, the volume-weighted average share price from July 12, 2022, until September 12, 2022, has been EUR 1.485. Therefore, the shares will be offered with a discount from the average share price, following the usual market practice for such transactions.
Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup: "We can consider the plan of these shareholders to sell a part of their shares through a public auction as a kind of next step after IPO, which will result in an increase in the liquidity of the shares and trading volumes on the stock exchange. Therefore, the increase in the number of shares in the free float will be beneficial both for the stock exchange and for existing and new shareholders of DelfinGroup. The company's growth, increasing profit and revenue indicators and regular dividends have increased investors' interest in the DelfinGroup, which is also reflected in the recent increase in the share price on the stock exchange. For new investors, this is an opportunity to purchase a larger amount of shares at a favorable and fixed price, thereby supplementing or diversifying their investment portfolio."
"The main reasons why I intend to sell a small part (about one-seventh) of the shares I currently own are the diversification of my private investments and assets, the fulfillment of the Nasdaq Baltic Main List's requirements for the volume of shares in free float, and the strengthening of the liquidity of the shares. I am already pleased that we managed to start this process because everyone will benefit from a larger number of shareholders – the company, the existing and the new DelfinGroup shareholders," emphasizes Agris Evertovskis, Chairman of the Supervisory Board and founder of DelfinGroup.
DelfinGroup has been profitable every year since 2010 while ensuring consistently high growth rates. Despite the market situation, the company has also had a very stable first year on the stock exchange. DelfinGroup investors are provided with regular income by the company's dividend policy, which is unique to the Baltic market - at least 50% of the company's profit has been paid to shareholders in dividends every quarter, and the company plans to continue this practice. In addition, annual dividends are also paid. Since January 1, 2022, the company has made four dividend payments for almost EUR 4 million or EUR 0.0879 per share. Furthermore, two additional dividend payments are planned this year.
Currently, the largest shareholders of DelfinGroup are L24 finance (57.53%), EC finance (18.81%) and AE Consulting (8.83%), while other shareholders own 14.83% of the shares.
According to the public offerings' proponents, detailed information about the mentioned public offerings of DelfinGroup shares is published on the website www.shareoffering.lv. LHV Bank is the Global Lead Manager and Bookrunner of the public offerings, and Eversheds Sutherland Bitāns is the shareholders' legal advisor.
In the prospectuses prepared by the shareholders, it is stipulated that the managing bank of the public offerings (LHV Bank) may combine both offerings in one and place them on the Nasdaq stock exchange system as one transaction.
Disclaimer: This announcement is an unpaid marketing communication in accordance with the Prospectus Regulation and does not constitute investment advice or an offer. The information provided herein contains general forward-looking statements on the Public Offerings of AS "DelfinGroup" shares by (1) SIA L24 Finance; (2) SIA EC finance. Every investment decision must be based on prospectuses approved by the Latvian Financial and Capital Market Commission. Please consult an expert before investing, if necessary. Approved prospectuses are available on Latvian Financial and Capital Market Commission’s website (www.fktk.lv).
About AS DelfinGroup
DelfinGroup is a licenced technology-based financial services company 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), and the sale of pre-owned goods online and at more than 90 branches across Latvia. On average, 35 thousand loans are issued monthly and serviced by a professional team of more than 300 DelfinGroup employees. The company has a total of over 400,000 registered customers. Since 2014, DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and, since 2021, as a listed company on the Baltic Main List. The company's IPO in 2021 attracted almost 6000 new shareholders. The company regularly pays dividends to its shareholders. In the first half of 2022, the company's net loan portfolio grew to EUR 53.8 million, while its EBITDA reached EUR 5.8 million, with profits before income tax for dividends of EUR 3.6 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.
For further information, please contact:
AS LHV Pank
Phone: +372 6800400
E-mail: [email protected]
AS DelfinGroup Head of PR
Phone: +371 26189988
E-mail: [email protected]