September 13, 2021
AS DelfinGroup shareholders approve IPO prospectus for submission to FCMC
On September 10 shareholders of the Latvian financial service company AS DelfinGroup approved the prospectus for an initial public offering (IPO). During the IPO, up to 8,395,000 new shares of the company will be issued. The IPO prospectus will be filed with Financial and Capital Market Commission (FCMC) for approval.
The shareholders also passed several other decisions regarding the IPO process and authorised the management board to take all the necessary actions to launch the initial public offering, to list shares of the company for trading on the regulated market (Nasdaq Baltic Main List), to submit the amendments to the company's Articles of Association to the Enterprise Register, to sign agreements with Nasdaq Riga and the Nasdaq CSD SE depository as well to sign agreement for share price stabilisation arrangements.
The Chairman of AS DelfinGroup Supervisory board and shareholder Agris Evertovskis: "Currently all the technical and legal preparatory work has been completed to obtain FCMC’s approval for the company’s IPO prospectus. As soon as the prospectus is reviewed and approved, we will announce the launch of the initial public offering (IPO). We plan to raise up to EUR 15 million in new equity as a result of the IPO which will be used to further grow the business and to reduce the cost of finance."
AS DelfinGroup shareholders decided to formalize the dividend policy in the company's Articles of Association. 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.
As one of the company’s bond issue from 2016 matures later this year, the shareholders supported the issue of new bonds up to EUR 10 million this year. This will allow the current bondholders the opportunity to continue investing in AS DelfinGroup debt securities.
The company's Articles of Association have been amended to specify the conditions when management board has to seek the prior approval of the supervisory board to undertake new financial obligations. The amended version stipulates that management board must confirm any financial obligations exceeding EUR 100,000 with the supervisory board.
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.
In March this year, AS DelfinGroup announced plans to launch an initial public offering of shares (IPO) on Nasdaq Riga Stock Exchange Baltic Main List during the second half of 2021. The offering will be available for retail investors in Latvia, Estonia and Lithuania and institutional investors of European Economic Area (EEA). 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/invest.
The company’s share capital is 40,000,000 shares with a nominal value of EUR 0.10 each.
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 Stock Exchange 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 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.