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Published: 2023-06-05 08:57:15 CEST
Inside information

Investors demonstrated strong interest: DelfinGroup share offer oversubscribed by 1.12 times

Investors from all Baltic states have shown significant interest in the public offering of Latvian fintech company AS DelfinGroup shares made by two largest shareholders of the company – SIA L24 Finance and SIA EC finance, – which concluded on Friday. A total of 2915 investors subscribed to 5,242,209 shares, equivalent to approximately 7.1 million euros, indicating that the offering was oversubscribed by 1.12 times.

The highest interest in DelfinGroup shares came from Estonia, followed by Latvia and Lithuania. Considering the high demand for DelfinGroup shares, the selling shareholders will allocate shares to the investors on a pro rata basis. This means that all investors who subscribed to shares will receive approximately 89% of the shares they subscribed for. The transfer of shares to investors will take place on June 6, 2023.

Following the share offering, the free float of DelfinGroup shares will increase from 16.07% to 26.77%. L24 Finance will retain 48.18% of shares and EC finance will 14.95% shareholding in DelfinGroup.

"The strong interest in DelfinGroup shares confirms investors' trust in the company. DelfinGroup has consistently delivered strong financial results in recent years, strengthened its management team, and set high strategic goals. These factors are highly appreciated by investors. The public offering of shares will enhance the liquidity of DelfinGroup shares on the stock exchange due to the increased free float. This is a long-term benefit for all the company's shareholders," explained Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup.

"We congratulate DelfinGroup shareholders with the successful execution of public offering of shares, increasing the number of shares in free float, thereby improving the liquidity of shares in secondary trading and demonstrating the company's commitment to broadening its shareholder base by taking advantage of Nasdaq Baltic regional market," says Daiga Auziņa-Melalksne, Chair of Nasdaq Riga Management Board.

"Public offers of shares from investors, rather than a specific issuer, are rare on the Baltic stock exchange. We believe that, considering the challenging market conditions observed over last year, this is a solid result and demonstrates investors trust in DelfinGroup," said Mihkel Torim, Head of Investment Banking of LHV bank.

From May 22 until June 2, 2023, DelfinGroup two largest shareholders – L24 Finance and EC finance, – publicly offered approximately 4.7 million DelfinGroup shares for sale. This represents 10.3% of all DelfinGroup shares. The shares were offered at a price of 1.35 euros per share, which was 10.6% lower than the volume-weighted average share price of DelfinGroup on the Nasdaq Baltic exchange from February 1, 2023, until April 30, 2023. Lead manager for the transaction was LHV Pank and legal counsel Eversheds Sutherland Bitans.

DelfinGroup has paid out up to 50% of the company's profits in dividends so far, and the company plans to continue this practice. In 2022, the company paid out almost 50% of the net profit, or 2.98 million euros, to the shareholders of the company in quarterly dividends. Management of DelfinGroup has proposed that the meeting of shareholders on 12 June will approve their proposal to pay quarterly dividend of over 800 thousand euros or 0.0177 euros per share on 30 June. The amount of dividend that the company plans to pay to shareholders for the first quarter of 2023 has increased by 14% compared to the dividend that DelfinGroup has paid to shareholders for the first quarter of 2022, alongside the company's rapid growth and profit growth.

DelfinGroup has been profitable every year since 2010 while ensuring consistently high growth rates. The company also demonstrates competitive performance on the stock exchange, providing investors with a good dividend yield and maintaining growth potential. DelfinGroup revenues in the first quarter of 2023 increased by 46% compared to the same period last year, reaching 11.1 million euros. The company's EBITDA increased to 3.9 million euros, which is 53% more than in the first quarter of 2022, while profit before taxes increased by 16% and reached 1.8 million euros. In addition, DelfinGroup loan portfolio has increased by 9% since the beginning of the year, reaching 73.5 million euros.


About AS DelfinGroup

DelfinGroup is a licenced fintech 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, thirty fivethousand 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 quarter of 2023, the company's net loan portfolio grew to EUR 73.5 million, while its EBITDA reached EUR 3.9 million, with profit before taxes of EUR 1.8 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:
         Aldis Umblejs,
         DelfinGroup Chief Financial Officer
         Phone: +371 26189988
         E-mail: IR@delfingroup.lv