FCMC has approved the public offering of DelfinGroup shares owned by company shareholders
The Latvian Financial and Capital Market Commission (FCMC) has approved the prospectuses submitted by two of the largest shareholders of AS DelfinGroup – SIA L24 Finance and SIA EC finance - for the sale of some of their shares through a public offering. Thus, all investors in Latvia, Lithuania and Estonia will have the opportunity to purchase up to 5.4 million DelfinGroup shares. As part of the public offering, L24 Finance will offer to purchase up to 3.65 million shares, and EC finance - up to 1.75 million shares.
The share price on the stock exchange is currently EUR 1.516 (as of September 20 at the time of the end of Nasdaq Riga stock exchange trading session). Also, following the information obtained from Nasdaq Riga, the volume weighted average share price from July 12, 2022, until September 12, 2022, has been EUR 1.485. However, the shares will be offered for EUR 1.44 as part of the public offering; thus, in accordance with the usual market practice for such transactions, with a discount from the average share price. The subscription period for shares will last from September 26 to October 5 inclusive.
According to the public offerings’ proponents, detailed information about the mentioned public offerings of DelfinGroup shares is published on the website www.shareoffering.lv.
Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup: "The fact that the two largest shareholders of DelfinGroup are planning to sell a relatively small part of their shares can be evaluated very positively, as this will increase the free float of shares. The liquidity of the shares will increase, and it is expected that in the future the trading with the company's shares will increase as well. It is a benefit for both existing and new shareholders. In addition, the existing shareholders' plan to sell part of their shares by making public offerings is a very innovative way to put additional shares into public circulation. These public offerings can be evaluated as another step to promote the development of the Latvian capital market."
Agris Evertovskis, Chairman of the Supervisory Board and founder of DelfinGroup: "Since the IPO, the company has continued to grow, including in terms of its share performance in 2022, DelfinGroup share price (Including dividends paid per share) is one of the best in the Baltic stock exchanges. Neither during the IPO nor after I have not sold any DelfinGroup shares. I have decided that the time has come to sell a small portion (about one-seventh) of the DelfinGroup shares I own. The public share offering will increase the overall liquidity of the stock market. Another reason why I am offering the shares for purchase now is an agreement with the stock exchange that within a year and a half after the IPO, a free float of at least 25% of DelfinGroup shares (or shares worth at least EUR 10 million) on the stock exchange, which is a requirement of the Baltic Main List, will be ensured. In addition, in the case of successful public offerings, the number of shares owned by each largest shareholder will not exceed 50%. From the point of view of potential investors, it will be another opportunity to buy a larger block of shares at a fixed price for a steadily growing listed company that has provided and plans to provide regular dividend payments to its shareholders. I founded this company in 2009 during the economic crisis and still consider it a good investment at all stages of the economic cycle."
DelfinGroup is the largest company from Latvia on the Baltic Main List. This year, the company plans to reach EUR 7.5 million in profit before taxes, which will be an increase of 44% compared to 2021. The growth of the loan portfolio is predicted to be 44%, reaching EUR 62 million. On the other hand, according to the strategic financial goals of the company, in 2024, it is planned to achieve a net loan portfolio of EUR 95 million and a profit before taxes of EUR 16 million. In the area of working capital management, DelfinGroup follows a diversified financing structure and attracts financing both by issuing bonds and by using the fundraising opportunities offered by investment platforms.
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 1 January 2022, the company has made four dividend payments for almost EUR 4 million in total, or EUR 0.0879 per share. Furthermore, two more 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.
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: +371 6 800 400
AS DelfinGroup Chief Financial Officer
Phone: +371 26189988