Latvija s financial group a / s DelfinGroup yesterday launched the initial public offering (IPO) of the company’s shares Nasdaq Riga officially turning a new page in the company’s history and becoming a public limited company. It is possible to apply for the purchase of the company’s IPO shares until October 11. The newly issued shares will be available to both individuals and institutional investors, and a total of 7.3 million newly issued shares will be offered, with the option to increase the offer by a further 1.095 million shares, bringing the total number of shares to 8,395,000, Day informed DelfinGroup Chairman of the Board Didzis Ādmīdiņš.
It is stipulated that any private and institutional investor from Latvia, Lithuania and Estonia, as well as other institutional investors may participate in the IPO in accordance with the prospectus of the initial public offering of shares. Given DelfinGroup’s goal of attracting the widest possible range of investors, a significant portion of the shares will be reserved for private investors from the outset – each investor will be given the opportunity to purchase up to 1,000 shares, but by signing up in the first four days granted the opportunity to purchase an additional 500 shares (each for 1.52 euros). Thus, private investors in the Baltic States will be provided with the opportunity to receive shares for at least 760–2,280 euros each. Of course, all interested parties will be able to apply for a larger number of shares.
As a result of the IPO, DelfinGroup plans to raise new capital in the amount of 12.76 million euros, which is planned to be invested in the company’s further growth, as well as to reduce the company’s financing costs. In the IPO process none of the current DelfinGroup will not sell their shares to shareholders, explained D. Ādmīdiņš.
DelfinGroup shareholders approved the IPO prospectus on September 9 and submitted it to the Financial and Capital Market Commission (FCMC) for approval, which approved it on September 21, thus giving the green light to DelfinGroup’s path to Nasdaq Riga Baltic Official List. With the launch of the IPO process DelfinGroup is the first company in the last four years to organize an IPO directly on the Latvian Stock Exchange.
Long experience in the stock exchange
DelfinGroup Nasdaq Riga is not a newcomer, as the group has more than seven years of experience in bond issues on the Nasdaq Riga stock exchange. During this period, the company has issued a total of six bonds for a total amount of 27 million euros. Of these six issues, the first two issues were quoted Nasdaq Riga on the Baltic Main List, two issues are currently listed Nasdaq Riga First North in the list of bonds, and two more issues are currently closed-ended issues. The first two bond issues have now been fully repaid to investors. In total, more than 160 investors from more than 20 countries have invested DelfinGroup bonds. Currently, the amount of active issues is 18.5 million euros, and the average investor investment reaches 115 thousand euros. The investment in the company’s bonds by persons related to the company’s shareholders is less than 1% of the total existing bond financing.
“DelfinGroup stable growth and the experience of successful financing to date Nasdaq Riga The stock exchange allowed us to take the next step in development and also start a public listing of the company’s shares. Until now, very few companies in Latvia have dared to start on the stock exchange with their share offer. Therefore, with our actions we want not only to open the opportunity for private and institutional investors to participate in our story of stable growth, but also to inspire other Latvian companies to start on the stock exchange. We plan that the profit of the new shareholders will be formed not only by the increase in the value of shares, but also by dividends paid once a quarter. In the last three years, the company has paid 6.73 million euros in dividends, “D. Ādmīdiņš emphasized.
In the beginning of September DelfinGroup The shareholders also decided to strengthen the regularity and procedure for the payment of dividends specified in the company’s dividend policy. Namely, the dividend policy approved by the Group envisages the payment of dividends on a quarterly basis, paying up to 50% of the company’s quarterly profit in dividends. In addition, once a year, after the approval of the annual report, it is planned to make additional dividends (annual dividends). Therefore, in general, it is planned to pay at least 50% of the company’s consolidated annual profit to shareholders in dividends during the company’s financial year.
In parallel with the move towards public limited company statuselfinGroup The shareholders have also decided to issue up to 450 thousand company shares as part of the company’s long-term motivation program. “By allowing the company to acquire shares, employees will have the opportunity to personally feel in the shoes of shareholders. In many parts of Europe, such share programs are becoming more common way to attract, motivate and retain employees. , how to motivate the company’s employees to achieve ambitious goals.We are ready to set an example for other Latvian companies.We believe that the opportunity to become co-owners of the company will further unite and positively motivate the existing team, as well as inspire new talents to work directly DelfinGroup, “said Agris Evertovskis, chairman of the company ‘s council and shareholder.
Such a shareholder decision essentially means that in addition to the salary DelfinGroup In the future, employees will have the opportunity to earn with the development of the company, as dividends will be paid at least up to 50% of the company’s profit. In the long run, the company’s employees will be able to become owners of more than 1% of the company’s shares. At present, the company’s share capital consists of 40 million shares with a nominal value of 0.1 euros per share.
As a potential benefit to employees from stock options, A. Evertovskis mentions the opportunity to participate in the development of the company as a shareholder with voting rights at shareholders’ meetings, as well as gaining experience and understanding of investing in securities and capital markets in general.
Leader in several segments
DelfinGroup This summer, the company published its long-term financial targets, stating that by the end of 2024, the company plans to double its consolidated net loan portfolio to more than 70 million euros. By gradually increasing profitability, the company plans to achieve EBITDA of 17.6 million euros in 2024, as well as a profit before taxes of 12.9 million euros.
In September DelfinGroup received the Corporate Governance Advisory Board award The Latvian Corporate Governance Award 2021 for the most successful selection of a company council. The corporate governance awards were awarded for the first time in Latvia, and they were awarded to the best managed Latvian companies. DelfinGroup the council was selected in an international competition involving 45 candidates from seven countries. On March 30 of this year, Gatis Kokins, Edgars Voļskis, Mārtiņš Bičevskis and Jānis Pizičs, experts in the field of finance, corporate governance and fintech, were approved as new members of the Supervisory Board. Agris Evertovskis, the chairman of the council, continued his work in the council. According to the Latvian Corporate Governance Code, the majority or three out of five DelfinGroup the members of the supervisory board shall be independent members of the supervisory board. This is important for small shareholders, as it is a guarantee that the company is managed in the interests of all shareholders.
Company representatives also stress that DelfinGroup is one of the few Baltic companies to have an Environmental, Social and Corporate Governance (ESG) Review for 2020 and includes multifaceted aspects of sustainable corporate governance. “DelfinGroup the business model is designed to take care of the environment, combining green thinking and economic benefits. The company’s network of pawnshops brings to life the basic principles of the circular economy throughout the country and promotes the extension of the life cycle of goods. Residents bring to the pawnshops the property they no longer need on the farm, which is carefully inspected and prepared for resale in branches, as well as on the Internet. We encourage people not to rush to throw away useful things on a daily basis, but to give them the opportunity to serve other people, receiving an appropriate reward. The company ‘s concern for the environment is also confirmed by the ISO management quality (9001) and energy management (50001) system certificates, “says D. Ādmīdiņš.
In turn, the company’s financial services promote the formation of a more inclusive society, ensuring the availability of modern financial services for various groups of society throughout the territory of Latvia. DelfinGroup promotes access to financial services for vulnerable groups such as seniors. In turn, the wide network of branches in the regions ensures the availability of financial services for residents outside Riga and large cities. The CSR Guidelines aim to support organizations that promote societal development, inclusion, diversity and growth. DelfinGroup Financial services for various groups of the society are available both in person at more than 90 branches throughout the territory of Latvia and online, the company’s representatives emphasize.
End of August DelfinGroup, expanding the pawnshop business in the regions of Latvia, concluded an agreement with the owner of the fourth largest pawnshop network in Latvia a/s Moda capital of Fashion takeover of the pawnshop loan portfolio by the end of 2021. Fashion The capital owned 25 pawnshop branches throughout Latvia.
“DelfinGroup goal when purchasing Fashion pawnshop loan portfolio is strengthening in the regions and increasing the number of customers in the regions of Latvia. Expansion in the regions is currently one of the focus areas of our company, as the availability of modern financial services is very limited in many places outside Riga. Fashion Capital has been a strong regional player with an extensive branch network and good investment potential. Before Fashion After concluding the acquisition agreement for the pawnshop business, we carefully got acquainted with this company and concluded that it is well managed and with a large Lombard customer base. Good governance is also evidenced Fashion capital long-term presence Nasdaq Riga on the stock exchange, where Moda capital bonds have been listed since 2010. Therefore, we believe that Fashion acquisition of capital pawnshop business is not only increasing DelfinGroup market share in the pawnshop segment, but will also increase the overall value of the company in the long run, “said DelfinGroup Member of the Board Ivars Lamberts.
DelfinGroup is a licensed technology-based financial group founded in 2009 and working with brands Banknote a VISION. The company constantly develops and offers consumer, senior, installment, pawnshop loans and sales of used and second-hand goods in more than 90 branches throughout Latvia, as well as online. DelfinGroup a team of more than 250 professionals issues an average of 35 thousand loans per month, while the company’s total number of registered customers exceeds 400 thousand. In 2020, the company’s loan portfolio reached 34.6 million euros, EBITDA was 9.3 million euros and profit before taxes reached 4.65 million euros. The company has been operating at a profit every year since 2010.