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Published: 2021-09-22 09:24:24 CEST
Prospectus/Announcement of Prospectus

FCMC approves AS DelfinGroup IPO prospectus

The Financial and Capital Market Commission (FCMC) at its 21 September Supervisory Board meeting has approved the prospectus for initial public offering (IPO) of the Latvian financial service company AS DelfinGroup. The DelfinGroup IPO will be the first IPO of the shares on Nasdaq Riga since 2017.

According to the IPO prospectus, the subscription for AS DelfinGroup new shares will take place from 28 September 2021 to 11 October 2021 (including). Retail investors from Latvia, Lithuania, and Estonia and institutional investors from Latvia and selected member states of the European Economic Area (EEA), as well as other institutional investors in accordance with the prospectus for the initial public offering (IPO) will be able to subscribe for the offer shares. AS DelfinGroup is entitled to make a public offer and issue up to 7,300,000 new shares (with over-allotment option for additional 1,095,000 shares, and the total number of shares will then reach 8,395,000 shares). The subscription price for each new share is EUR 1.52. The minimum amount of investment is 1 share.

AS DelfinGroup Chairman of the Management Board Didzis Ādmīdiņš: “We are very pleased that AS DelfinGroup will be able to launch first IPO of the shares on Nasdaq Riga since 2017.  The maturity and readiness of the company, the quality of the prospectus and compliance with regulatory enactments have been acknowledged by all the relevant regulatory bodies in order for AS DelfinGroup to launch the public offering of the new shares on Nasdaq Riga as early as 28 September 2021. AS DelfinGroup plan is to be listed on Nasdaq Riga Baltic Main List immediately after the IPO. Currently there are 32 companies from the Baltic countries and just three from Latvia on Baltic Main List. AS DelfinGroup is a long-standing profitable company with a proven fintech-based business model, strong corporate governance, a clear and attractive dividend policy and a successful track record as a bond issuer on Nasdaq Riga. IPO will be a foundation for the further development of the company and will facilitate more rapid growth in future.”

AS DelfinGroup plans to raise up to EUR 12,76 million gross proceeds during the IPO. All capital raised will be used to further grow the company and to reduce the cost of financing. The current AS DelfinGroup shareholders will not sell any of their shares during the IPO process.

AS DelfinGroup will be one of the few listed companies in the Baltics to pay sizable quarterly dividends to its shareholders. AS DelfinGroup has established and adheres to a policy to make quarterly dividend payments, distributing up to 50% of quarterly profits to shareholders. In addition, once a year after the approval of the annual report, the company may opt to pay additional dividends (annual dividends). During the course of the financial year, the company plans to distribute dividends to shareholders amounting to at least 50% of its consolidated profits.

LHV Bank and the law firm Eversheds Sutherland Bitāns are acting as AS DelfinGroup IPO advisors. More information about the planned IPO is available at: https://www.delfingroup.lv.

AS DelfinGroup published the company’s long-term financial goals for 2024. By the end of 2024, the company plans to double its consolidated net loan portfolio to over EUR 70 million. Gradually increasing its profitability, in 2024 the company plans to reach EBITDA of EUR 17.6 million, as well as pre-tax profits of EUR 12.9 million.

The company’s share capital currently is 40,000,000 shares with a nominal value of EUR 0.10 each.

More information on AS DelfinGroup IPO process will be provided during the virtual conference (webinar) on 28 September at 11:00 (Riga time). AS DelfinGroup Chairman of the Management Board Didzis Ādmīdiņš and member of the Management Board Kristaps Bergmanis will answer the questions of the attendees. Participants are welcome to send any questions until 28 September at 10:00 via e-mail: marta.muizniece@nasdaq.com. Prior registration is available on: https://register.gotowebinar.com/register/5595393100878759949.

About AS DelfinGroup

AS DelfinGroup is a licenced technology-based financial service 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 250 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.

         For further information, please contact:
         Kristaps Bergmanis
         AS DelfinGroup Management Board Member
         Tel: +371 26189988

AS DelfinGroup Company Presentation IPO ENG.pdf
AS DelfinGroup IPO prospectus 2021.pdf
AS DelfinGroup IPO prospectus summary EE.pdf
AS DelfinGroup IPO prospectus summary ENG.pdf
AS DelfinGroup IPO prospectus summary LT.pdf