Latvijas Banka has approved prospectuses submitted by two of the largest shareholders of AS DelfinGroup (hereby called DelfinGroup) for the public offer to sell part of their DelfinGroup shares. The shareholders are SIA L24 Finance and SIA EC finance. DelfinGroup has provided the following operational and financial information:
Investors in Latvia, Lithuania, and Estonia now have the opportunity to purchase up to €4.66M of DelfinGroup shares. For both shareholders, the offer price is €1.35 per share. The subscription period will last from 22 May–2 June 2023 inclusive.
According to the approved prospectuses by Latvijas Banka, both shareholders are offering to sell a relatively small part of their shares. They are doing this in order to increase the free float of the shares, increase the liquidity of the shares, and diversify their assets and investments.
During the public offerings, SIA L24 Finance will offer up to €3.15M shares, while SIA EC finance will offer up to €1.51M in DelfinGroup shares.
On the day of approval of the prospectuses, the share price on the stock exchange was €1.515. Following the information obtained from Nasdaq Riga, the volume-weighted average share price from 1 February 2023 until 30 April 2023, was €1.51. The shares are offered for €1.35 per share during the public offering. This is more than a 10% discount from the volume-weighted average share price in the previously mentioned trading period.
Detailed information about the public offering of DelfinGroup shares can be found here.
"This is already the second time that the two largest DelfinGroup shareholders are making public offerings, providing the opportunity for investors from Latvia, Lithuania and Estonia to purchase DelfinGroup shares. We are positive about the initiative of two largest shareholders of DelfinGroup to offer a part of their shares for sale, thereby increasing the free float of shares and expanding the overall DelfinGroup shareholder base. Such public offerings are a good opportunity for both existing and new shareholders to acquire a package of shares at a fixed price below their current market value, and it promotes the development of capital markets in Baltic states."
DelfinGroup revenues in the first quarter of 2023 increased by 46% compared to the same period last year, reaching €11.1M. The company’s EBITDA increased to €3.9M, which is 53% more than in the first quarter of 2022. Profit before taxes also increased by 16% and reached €1.8M. In addition, the DelfinGroup loan portfolio has increased by 9% since the beginning of the year, reaching €73.5M.
DelfinGroup has been profitable every year since 2010 while ensuring consistently high growth rates. The company also demonstrates competitive performance on the stock exchange, providing shareholders with a dividend yield and maintaining growth potential.
Shareholders have received dividends of up to 50% of DelfinGroup’s profit each quarter. Based on dividend payments made by the company until 16 May 2023, over the last 12 months, DelfinGroup has paid €5.5M in dividends, or €0.121 per share. This provided shareholders with a dividend yield of 8%, based on the share price at the closing of the 16 May 2023 trading session on the Nasdaq Riga stock exchange. Based on the dividends paid over the last 12 months at the offer price of €1.35, the dividend yield would be 9%.
Based on information included in the offering prospectuses, the largest shareholders of DelfinGroup are SIA L24 Finance (55.13%), SIA EC finance (18.22%), and SIA AE Consulting (8.75%), while other shareholders own 17.9% of the shares.
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 Offerings of DelfinGroup shares by (1) SIA L24 Finance; (2) SIA EC finance. Every investment decision must be based on prospectuses approved by Latvijas Banka. Please consult an expert before investing, if necessary. Approved prospectuses are available on Latvijas Banka’s website (www.bank.lv).
About DelfinGroup
DelfinGroup is a licensed fintech 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 (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 2022, the company’s net loan portfolio grew to €67.4 million, while its EBITDA reached €13.1 million, with profit before taxes of €7.3 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.
