March 23, 2021
DelfinGroup plans IPO on Nasdaq Baltic Market
Important. The information provided herein is not investment advice nor a proposal. This is only general information about the intention and plans of AS DelfinGroup in connection with the possible IPO process. All investment decisions must be based on a prospectus approved by the Financial and Capital Market Commission and professional assessment or advice.
AS DelfinGroup, which operates in Latvia’s financial sector, plans to launch its initial public offering (IPO) of shares on the Nasdaq Riga stock exchange during 2021. The amount and price of shares to be issued will be publicised before the initial public offering is officially announced according to an offering prospectus approved by the regulator. AS DelfinGroup has recorded seven years of successful experience in issuing bonds on the Nasdaq Riga stock exchange and has cooperated successfully with thousands of investors, attracting financing on a P2P mutual lending platform.
By attracting additional financing, AS DelfinGroup aims to strengthen its position as market leader and develop new and innovative consumer lending products for various social groups. With its new financial technology solutions, the company plans to further develop its consumer lending business in order to compete even more successfully in the segment, including competition with traditional banks.
Didzis Ādmīdiņš, Chairman of the Managing Board, AS DelfinGroup: “The stable growth of AS DelfinGroup and its successful experience in attracting financing on the Nasdaq Riga stock exchange so far enables us to take the next step and begin to plan the public listing of the company’s shares. Until now, very few companies in Latvia dared to offer their shares on the stock exchange. By doing so, we want to not only open an opportunity for retail and institutional investors to participate in our story of stable growth, but to also inspire other companies to make a start on the stock exchange. We anticipate that upside for new shareholders can come not only from an increased share price, but also from dividends paid on a quarterly basis. Over the last three years, the company has paid 6.73 million euro in dividends.”
Daiga Auziņa-Melalksne, Chairman of the Nasdaq Riga Management Board: “We are pleased that the experience gained by DelfinGroup as an issuer of public bonds has inspired the company’s shareholders to set new, ambitious growth targets. We wish them success in their planned public issue of shares.”
Ivars Bergmanis, Head of Institutional Markets at LHV bank, the Global Coordinator for the planned IPO: “For many years, there were no representatives of the Latvian financial sector on the Baltic stock market. Therefore, the new investment opportunity offered by AS DelfinGroup would be a fresh addition for investors. Furthermore, the company combines several factors that are important for investors: historical growth, planned regular dividends, as well as an active focus on sustainability issues.”
Māris Vainovskis, attorney of law, senior partner at Eversheds Sutherland Bitāns: “The path taken by AS DelfinGroup towards listing its shares on the stock exchange, in addition to its previously-issued bonds, confirms the importance of sustainability in their future business. The company’s preparation for listing and the development of a prospectus is a procedure that needs to be accomplished carefully, even before the Financial and Capital Market Commission gives permission to announce the public share offering. Some of the benefits associated with the company’s listing include access to capital for development, as well as a higher profile and credibility, which are appreciated by clients and partners.”
Agris Evertovskis, co-founder and Chairman of the DelfinGroup Supervisory Board: “There will be a long-term benefit for all parties involved from AS DelfinGroup entering the stock exchange. Applying the newest technologies, we are committed to further developing innovative and sustainable services for wide social groups, which also include making financial services more available to those consumers who currently do not have decent access to banking services. We will also continue to guide and educate society on the circular economy by promoting and ensuring the turnover of pre-owned goods in our branch network and on the Internet.”
In 2020, the unaudited consolidated turnover of AS DelfinGroup reached 24 million euro, its credit portfolio amounted to 34 million euro, and EBITDA increased to 9 million euro. Turnover increased by 8%, and the company’s credit portfolio showed a growth of 9% year-on-year, while consolidated EBITDA increased by 8%. The total number of clients served by AS DelfinGroup in Latvia has already exceeded 400,000 with 35,000 different loans issued per month, on average.
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AS DelfinGroup’s growth & development
The group’s first company, SIA Lombards24.lv, was established 12 years ago, in 2009. By 2010, the company operated a network of 50 pawnshops all over Latvia. As the business grew and its range of services increased, the first large reorganization took place in 2012, after which the company changed its name to ExpressCredit. Since 2014, the company’s bonds have been traded on the Nasdaq Riga stock exchange. Investors include both private individuals and institutional investors from Latvia, Lithuania, Estonia, and other countries. Given its continued growth, in 2020 the group entered the next stage of reorganization, changing its name to DelfinGroup. In January 2021, DelfinGroup completed its reorganization process by changing its legal status from a limited liability company to a joint-stock company. The share capital of AS DelfinGroup is now 4 million euro and consists of 40 million shares. The company has also improved and strengthened its principles of best corporate governance, which included the organization of an international contest early this year to select independent members of the Supervisory Board.
DelfinGroup is a licenced financial services company founded in 2009, which currently represents three brands – Banknote, VIZIA and Rīgas pilsētas lombards. The company employs 270 professionals at 91 branches located in 38 Latvian cities and towns. The estimated amount of taxes paid for the year 2020 is 3.42 million euro. DelfinGroup is a member of the Latvian Chamber of Industry and Commerce and has received Gold Level status within the cooperation programme of the Latvian State Revenue Service. The core services of the group include the sale of pre-owned goods in branches and on the Internet, pawn loans, consumer loans, and senior loans, the terms of which are specially adapted for seniors. DelfinGroup bonds are listed on the Nasdaq Riga First North bond list.
AS DelfinGroup Managing Board member
Phone: +371 29144168