DelfinGroup : shareholders will make public offer of 8.99 million DelfinGroup shares

DelfinGroup
Other information disclosed according to the rules of the Exchange DelfinGroup shareholders will make public offer of 8.99 million DelfinGroup shares

The major shareholders, AS ALPPES Capital and SIA Curiosity Capital,that currently together with other related entities own total of 47% of the of the Latvian fintech company DelfinGroup, which is listed on the Nasdaq Baltic Main List, are offering to sell up to 26,4% of DelfinGroup shares through a public offering.

On Wednesday, 15 May 2024, the Bank of Latvia(Latvijas Banka) approved a prospectus of the terms and conditions of the offering, according to which the shares will be offered at a price of 1.09 euros per share. If to compare the offer price with the company's dividend payments of the last 12 months, the dividend yield of the share would be 8.3% including planned paid dividend in June 2024. New investors participating in the offer are eligible for the quarterly dividend which is planned to be paid already in June and also for annual dividends for 2023 which are planned to be paid in July 2024.

The sellers are two major shareholders of DelfinGroup, the companies ALPPES Capital and Curiosity Capital, that offer in base offer up to 8,985,000 shares of DelfinGroup through a public offering, representing 19.8% of the total share capital. The sellers have an option to increase the offer by up to additional 3,000,000 shares in case of high demand. With the additional offer this constitutes 26,4% of the total share capital of DelfinGroup. Following the transaction, ALPPES Capital and Curiosity Capital will remain among largest shareholders of DelfinGroup.

The offer price is 12.8% lower than the average volume weighted share price of DelfinGroup in the stock market over the past 3 full months. The discount applied during the share offering period is a standard practice of similar transactions in order to motivate new and existing investors to participate in the share offering. In addition, the sellers and their affiliated persons have signed a lock up agreement and have legally committed not to sell any more shares than the offer shares up until the end of February 2026. As mentioned previously, after this transaction the selling shareholders will still remain among the largest shareholders of DelfinGroup thereby aligning long-term interests with other investors.

Aigars Kesenfeldsexplained that the purpose of the sale is to further increase free float and liquidity of DelfinGroup shares on the stock exchange, also to diversify the family investment portfolio and equity investments in several more early-stage businesses operating in various industries. "We chose the public offering to sell the shares to ensure equal access to all potential investors. Selling a relatively large block of shares on a market in the course of normal daily trading would harm the share price and thus the company's current investors in longer term. The chosen form of offering creates an attractive investment opportunity for all existing investors to increase their shareholding and for new investors to purchase the shares of company that has demonstrated a rapid growth since its IPO in 2021 and has achieved one of the highest dividend yields of all listed companies in Baltic countries," said Kesenfelds.

The management team and also the founder and chairman of the Supervisory Board of the company, Agris Evertovskis, who is also among the largest shareholders of DelfinGroup, will not sell any shares during this share offering. According to Evertovskis, given the fact that despite the macroeconomic headwinds, all of the key financial metrics of DelfinGroup- quarterly revenue, EBITDA, net profit and net loan portfolio - has doubled or more than doubled since the IPO, the current share price of the company, in his opinion, does not reflect the current and long term fundamental value of DelfinGroup. "Given the strong financial performance of the company and high dividend yield, the expected drop of interest rates in future should have a further positive long-term impact on DelfinGroupprofitability and share price," Evertovskis said.

The subscription period for the DelfinGroup share offering starts on 20 May 2024 and ends on 3 June 2024. The selling shareholders have chosen LHV Pank to be the lead manager of the share offering.

The prospectus of the terms and conditions of the offering can be found on the website of the Bank of Latvia: https://bank.lv/.

The major shareholders of DelfinGroup also sold the company's shares through a public offering at the end of May 2023. At that time, almost 3000 investors from all three Baltic states submitted purchase orders for 5.2 million shares and share offering was oversubscribed with total investor demand exceeded supply by 1.12 times.

Disclaimer: This announcement is an unpaid marketing communication in accordance with the Prospectus Regulation and does not constitute investment advice or an offer. The information provided herein contains general forward-looking statements on the Public Offering of AS DelfinGroup shares by (1) ALPPES Capital; (2) Curiosity Capital. Every investment decision must be based on prospectuses approved by the Bank of Latvia. Please consult an expert before investing, if necessary. Approved prospectuses are available on the Bank of Latvia's website (www.bank.lv).

About DelfinGroup

AS DelfinGroup is a licenced fintech company established in 2009 and operates under the brand names Banknote and VIZIA. The company has been profitable every year since 2010. DelfinGroup 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. 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 regularly pays dividends to its shareholders. The sustainability of DelfinGroup is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy.

For further information, please contact:
AS LHV Pank
Phone: [phone]
E-mail: [e-mail]

Aldis Umblejs,
DelfinGroup Chief Financial Officer
Phone: [phone]
E-mail: [e-mail]