Published: 2016-05-18 11:00:00 CEST
LHV Group
Company Announcement

Subscription Results of AS LHV Group IPO

The public offering of AS LHV Group shares was concluded on Monday.  In total 5485 investors participated in the offering subscribing altogether 6.6 million shares in the amount of EUR 46.2 million. This makes the IPO over-subscribed 3.3 times.

LHV Group decided to allocate shares to all investors who subscribed up to 200 shares in full. To all investors who subscribed to more than 200 shares LHV will allocate as a percentage of the exceeding amount:

  • 28.76% but not more than 20,000 shares if the investors are existing investors,
  • 19.38% but not more than 20,000 shares if the investors are clients of LHV, and
  • 10% but not more than 20,000 shares to all remaining investors.

43.7% of 5485 subscribers received shares in the desired amount. 56.3% of the investors received less than they subscribed.

According to Erkki Raasuke, CEO of LHV Group, the offering was a very successful one. “Our aim is to shape LHV into a publicly traded company with the biggest possible pool of shareholders. The concluded issue was an important step along the way. In terms of investor numbers we will be the second largest company listed on Nasdaq Tallinn Stock Exchange.

In the allocation process we were guided by the principle that all investors who participated in the subscription are welcome as investors. In terms of quantity of allocated shares, we preferred firstly existing shareholders and subordinated bond investors, the same way as was done during previous issues. According to the subscription results previous investors could have provided the full issue size, but this was not our goal.

Secondly we preferred clients of LHV because they have contributed to building our business and developing products. To new investors we allocated 10% of their subscriptions that exceeded 200 shares. All in all 31% of new shares went to existing investors, 55% went to clients of LHV and 14% were allocated to new investors,” Erkki Raasuke commented.

The first public offering of LHV shares took place on 2–16 May. The issue size was 2,000,000 new shares with subscription price of EUR 6.95 per share. The EUR 13.9 million raised will be used to grow LHV’s business volumes. The shares will be issued on 20 May and listed on Nasdaq Tallinn Stock Exchange on next Monday, 23 May at 10 AM.

An overview has been added to the announcement.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are AS LHV Pank and AS LHV Varahaldus. LHV employs over 250 people and about 90,000 customers use LHV’s banking services. Pension funds managed by LHV have over 170,000 customers.

         Priit Rum
         Communication Manager
         Phone: +372 502 0786

IPO allokatsioon 2016_press_eng.pdf