October 10, 2022
Almost 900 investors subscribed for DelfinGroup shares in the public offerings
885 investors subscribed for the company's shares in the public share offerings organised by the largest shareholders of AS DelfinGroup. The two largest shareholders of the company – SIA L24 Finance and SIA EC finance – sold 741,528 shares for a total value of 1,067,800 euros. As a result, the main goals of the public offerings will be achieved – to increase the market's liquidity and to ensure a free float of shares worth at least 10 million euros (subject to Nasdaq Riga approval), which is one of the requirements of the Baltic Main List on Nasdaq Riga stock exchange.
Similar to the IPO that took place last year, the most significant interest was observed from Estonian investors. 74% of the auction participants were from Estonia, 23% from Latvia, and 3% from Lithuania. After the settlement there will be more than 15% shares of DelfinGroup in public circulation. As part of the public offerings, the price of one share was set at 1.44 euros.
Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup: "DelfinGroup IPO in October 2021 resulted in almost 6,000 investors becoming shareholders of the company. Almost 900 investors bought shares in the public offerings held by the company's two largest shareholders, and this number shows that investors trust DelfinGroup. It is the best investor approval we can get! During these transactions, most of the existing shareholders had the opportunity to increase their positions, and the new ones – to join the list of shareholders of the company. It should be mentioned that as a result of these public offerings, the liquidity of DelfinGroup shares on the stock exchange should increase, as the number of shares in public circulation will increase. This is a long-term benefit for all shareholders."
"I am happy that the main objectives of the public offerings were achieved through the share offerings. The number of shareholders increased, market liquidity for the shares will improve in future, and the free float of at least 10 million euros required by the stock exchange rules will be reached. Even though more shares were offered than were eventually sold in these offerings, the result is good, and all shareholders will benefit. I congratulate all the new shareholders as well as the existing investors who increased their share position on favourable terms," emphasizes Agris Evertovskis, Chairman of the Supervisory Board and founder of DelfinGroup.
Ivars Bergmanis, a representative of LHV Pank, the Global Lead Manager and Bookrunner of the public offerings: "Despite the very challenging market conditions, investors’ activity confirmed that there is demand for DelfinGroup shares and we assume that regular dividend payments were an important factor when considering this investment. Using such a process in the Baltics (a prospectus from shareholders, not a specific issuer) is a rare case, which, in our opinion, provided a transparent and effective way for larger shareholders to reduce their stake in the company."
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 January 1, 2022, the company has made five dividend payments for a total of nearly 4.6 million euros, or 0.1013 euros per share. In addition, one more dividend payment is planned this year.
DelfinGroup has been profitable every year since 2010 while ensuring consistently high growth rates. The revenue of the company in the first half of this year was 16.095 million euros, which is 34.8% more than in the corresponding period of 2021. Therefore, DelfinGroup net profit increased by 61.4%, reaching 2.631 million euros. In the 3rd quarter of 2022, DelfinGroup continued to show strong results in all main business segments. New consumer loans were issued in the 3rd quarter of 2022 for 16.8 million euros or 54% more than last year's corresponding period. Pawn lending issuance increased by 51% compared to the previous year, while sales of verified pre-owned, slightly pre-owned, and new goods increased by 45%
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.
AS DelfinGroup Head of PR
Phone: +371 26189988
E-mail: [email protected]