Results of the Initial Public Offering of Shares of TextMagic AS
TextMagic AS (registry code 16211377, address Mõisa 4, Tallinn, Estonia the “Company”) hereby discloses the results of the initial public offering of the shares of the Company (the “Offering”).
On 9 December 2021 at 16:00, the Offering ended. As part of the Offering, the Company aimed to raise up to 2.5 million euros by the issue of up to 500,000 new ordinary shares (the “Offer Shares”). Altogether 15,410 investors subscribed altogether for 9,896,434 shares for 49.5 million euros, i.e. the Offering was oversubscribed by 19.8 times.
Priit Vaikmaa, the majority shareholder and CEO of the Company notes that considering the volume of the Offering, which was up to 2.5 million euros, a large oversubscription was expected. “Oversubscription of our IPO by more than 19.8 times is a new record for First North Baltic. We are immensely grateful for the interest and trust and thank all investors who participated in our IPO. Our next steps are to remain focused on the implementation of the growth strategy for the coming years. We are proud to hold the title as the locally-listed Estonian technology company with the largest number of shareholders” he adds.
“We have already executed share option agreements with all full-time employees and service providers of TextMagic’s group companies. So, all employees and service providers can also participate and benefit from the expected future growth of the Company,” Vaikmaa comments.
Interesting facts of the subscription process:
15,410 investors subscribed for the Offer Shares
The median number of shares subscribed for was 120
The average number of shares subscribed for was 642, which is heavily influenced by a few very large subscriptions
The Offer Shares are allocated between the investors according to the following principles:
Each investor participating in the Offering will receive full allocation of up to 35 Offer Shares;
Multiple orders from a single subscriber were combined for allocation purposes;
The remaining 2% of Offer Shares were distributed evenly in proportion to the number of Offer Shares subscribed for by each investor.
The above clearly reinforces the message provided in the Company Description, whereby the Company sought to maximize its investor base, while treating all subscribers equally.
The Offer Shares allocated to the investors are expected to be transferred to the securities accounts of the investors on or about 14 December 2021. Trading with the shares on the First North MTF operated by Nasdaq Tallinn AS is expected to commence on or about 15 December 2021.
We expect the secondary market to provide an opportunity for investors to re-balance their desired holding in the Company.
The net proceeds from the Offering are approximately 2,250,000 euros. The funds received from the Offering will be used for development of the new product Touchpoint, recruitment of new employees and also for upgrading the current TextMagic A2P SMS platform.
The Company is a parent company of TextMagic group. TextMagic group is engaged in provision of text messaging services internationally, enabling its clients to send information via SMS platform. Most of the clients of TextMagic are located in the US, the UK, Canada and Australia. TextMagic’s SMS software can be used for sending notifications, alerts, reminders and confirmations as well as for conducting SMS marketing campaigns anytime anywhere.
CEO of TextMagic AS