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Published: 2021-09-28 12:34:25 CEST
DelfinGroup
Other information disclosed according to the rules of the Exchange

CORRECTION: AS DelfinGroup goes public and launches Initial Public Offering on Nasdaq Riga

CORRECTION: A link to "AS DelfinGroup IPO presentation EE" has been changed and another link to IPO video presentation in Estonian has been added.

 Latvian financial service company AS DelfinGroup launches initial public offering (IPO) on Nasdaq Riga on Tuesday, 28 September 2021. The offer period will last until 11 October. Private and institutional investors will have the opportunity to subscribe to 7,300,000 new shares. The company has an over-allotment option for additional 1,095,000 shares, hence, the total number shares in issue can reach 8,395,000. Price per offer share is EUR 1.52 and the minimum investment amount per investor is 1 share.

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 to the offer shares.

Given the company`s aim to attract the broadest possible investor base, a significant proportion of shares will be reserved for retail investors – up to 1000 shares each, and up to 500 guaranteed shares (at a price of EUR 1,52 per share) on top for those who subscribe in the first four days (until 1 October). This will ensure every Baltic retail investor the opportunity to subscribe to shares in the amount of EUR 760 - 2280. Investors may also subscribe to a larger number of shares. By initially subscribing to a larger number of shares, the possibility for receiving larger number of shares at allocation increases, because, if the demand for shares exceeds the number of offer shares, each retail investor will receive only a proportion of subscribed shares.

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 Chairman of the Management Board Didzis Ādmīdiņš: “This is a big milestone for both AS DelfinGroup and Latvian capital market, because, after a four-year break, a company goes public on Nasdaq Riga. We have built a growing and profitable business over the course of 12 years since inception and created sustainable corporate governance model that allows the company to operate and develop during economic ups and downs. Despite COVID-19 pandemic and related restrictions, the company continues to grow. Our promise to potential investors is that this IPO is an opportunity to prosper together with AS DelfinGroup in the future. AS DelfinGroup has been profitable every year since 2010 and regularly pays dividends to our shareholders. We have sealed the pledge to regularly pay dividends to shareholders in the company’s Dividend policy, which provides for both quarterly dividends up to 50% from the profit of the reporting quarter and annual dividends on top of that.”

“Several successful bond issues have established DelfinGroup reputation among Baltic investors. It is great to see that the company is continuing its growth story with this public offering of shares and so opening new investment opportunities for private and institutional investors,” says Daiga Auziņa-Melalksne, the CEO of Nasdaq Riga and Head of the Nasdaq Baltic Market.

This summer 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 offer period (subscription) will commence simultaneously in all three Baltic states at 10:00 (Riga time) on 28 September. It will close at 15:30 (Riga time) on October 11. By 16:00 (Riga time) on 12 October the results of the issue will be announced.

To subscribe for shares investors must submit a subscription undertaking to their bank. Subscription will be facilitated by the members of Nasdaq Riga: LHV Bank, Swedbank, SEB, Luminor Bank, Citadele, Rietumu Banka, BlueOrange, Signet Bank, Siauliu Bankas, Sandinaviska Enskilda Banken, Nordea Bank and others. Full list of Nasdaq Riga members is available on: https://nasdaqbaltic.com/statistics/lv/members.

AS DelfinGroup virtual IPO video presentation can be viewed: ENG: https://www.delfingroup.lv/video/DelfinGroup_IPO_Presentation_en.mp4.

EE:  https://www.delfingroup.lv/video/DelfinGroup_IPO_Presentation_ee.mp4

AS DelfinGroup IPO presentation LV: https://online.fliphtml5.com/evdpk/nkqp/.

AS DelfinGroup IPO presentation EN:  https://online.fliphtml5.com/evdpk/nhaa/.

AS DelfinGroup IPO presentation  EE:  https://online.fliphtml5.com/evdpk/tgwm/.

AS DelfinGroup has submitted the application to be listed on Nasdaq Riga Baltic Main List and will be one of four Latvian and 33 Baltic companies to be traded on this list. LHV Bank and the law firm Eversheds Sutherland Bitāns are acting as AS DelfinGroup IPO advisors. AS DelfinGroup has also signed a contract with LHV Bank to provide share liquidity.

In order to launch the planned IPO, AS DelfinGroup shareholders adopted decisions on, among other things, increase of share capital by EUR 839,500, approval of the terms of the share capital increase, amendments to articles of association, public offering of newly issued shares by AS DelfinGroup and the listing of shares on the regulated market on Nasdaq Riga stock exchange, as well as on the approval of AS DelfinGroup initial public offering prospectus. In accordance with the adopted decisions, the shares of AS DelfinGroup have been converted into bearer shares and admitted in Nasdaq CSD SE.

More information about the planned IPO is available at: www.delfingroup.lv.

The Financial Capital and Market Commission (FCMC) registered AS DelfinGroup prospectus for initial public offering on 21 September 2021. Full prospectus is available on https://www.fktk.lv/wp-content/uploads/2021/09/AS-DelfinGroup-IPO-prospectus-2021.pdf.

AS DelfinGroup prospectus summary EN: https://www.delfingroup.lv/storage/files/as-delfingroup-ipo-prospectus-summary-eng.pdf.

AS DelfinGroup prospectus summary LV: https://www.delfingroup.lv/storage/files/as-delfingroup-ipo-prospectus-summary-lv.pdf.

AS DelfinGroup prospectus summary EE: https://www.delfingroup.lv/storage/files/as-delfingroup-ipo-prospectus-summary-ee.pdf.

AS DelfinGroup prospectus summary LT: https://www.delfingroup.lv/storage/files/as-delfingroup-ipo-prospectus-summary-lt.pdf.

AS DelfinGroup prospectus summary RU:https://www.delfingroup.lv/storage/files/as-delfingroup-ipo-prospectus-summary-rus.pdf.

More information about AS DelfinGroup IPO process will be provided during the virtual conference (webinar) on 28 September at 11:00 (Riga time) in English and at 13:00 (Riga time) in Latvian. 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 for webinar in English is available on: https://register.gotowebinar.com/register/5595393100878759949.

Prior registration for webinar in Latvian is available on: https://register.gotowebinar.com/register/2240210279486646284.

 AS DelfinGroup experience with Nasdaq Riga

AS DelfinGroup has been issuing bonds on Nasdaq Riga for over 7 years. During this period the company has issued bonds six times for the total amount of EUR 27 million. First two bond issues were listed on Nasdaq Baltic Main List, the two following ones are currently being listed on Nasdaq Baltic First North Bond list, and another two issues were private placements. Bonds of the first two issues have been fully repaid. More than 160 investors from over 20 countries have invested in AS DelfinGroup bonds. Today the amount of active bond issues is EUR 18.5 million with an average investment of EUR 115, 000 per investor. The investment amount of related parties into the company bonds does not exceed 1% of the total amount of bonds outstanding.

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
         WhatsApp: +371 26189988
         E-mail: ipo@delfingroup.lv