18.05.2022
The subscription period for the new share offer from LHV Group started today. Investors will be able to subscribe to new shares at a price of EUR 36 per share. The subscription period ends on 1 June. Share subscription rights will also be traded from 18–30 May.
LHV is raising EUR 25 million of additional capital to finance the investments needed to grow the business and increase the capital buffers of LHV Group companies. The majority of the additional funding will be planned to capitalise the new bank to be set up in the UK once it is licensed as a credit institution.
According to Madis Toomsalu, the Head of LHV Group, Estonia’s largest local financial group is this time raising funding mainly to grow its international operations. ‘LHV Group is setting up a new bank in the UK. We want to export even more of the financial services and expertise developed in Estonia to the world. We have applied for a banking licence and need capital to establish a bank there,’ Toomsalu explained. ‘With the UK bank, we have a clear growth plan in which we are offering investors the opportunity to participate. We are already generating revenue from international clients, we are growing the volume of this revenue and, once licensed, we will be able to expand into new client segments in the UK. Our global operations are underpinned by a strong backbone in Estonia, continued growth in the number of clients and interest income, and a very strong loan portfolio,’ Toomsalu added.
LHV has the possibility to increase the issue size to EUR 35 million in case of strong interest. This means that the company will issue a minimum of 694,444 and a maximum of 972,222 new ordinary shares. When subscribing shares, investors will have to pay EUR 36 per share. The subscription of new shares will close on 1 June at 16.00.
Use of subscription rights
LHV will again conduct an additional share offer by using subscription rights. The so-called rights-issue gives an advantage to existing shareholders, who can, if they want, maintain their holding in the company.
As of 13 May, the pre-emptive subscription rights were transferred to the accounts of persons who were LHV shareholders (with the symbol of LHV01SR). The shareholder received 1 subscription right for every 44 shares held, whereby if the shareholder held at least 1 share, the shareholder received at least 1 share subscription right.
The pre-emptive subscription rights give the investor the knowledge that, by subscribing for shares in the offer, they are guaranteed the rights-covered part. Shares can also be subscribed for in excess of the number of rights, or with no rights at all. In such a case, the shares not covered by the rights are allotted among the investors.
If the investor does not want to use the subscription rights, they can be sold on the stock exchange. Rights can also be bought on the market. Trading of subscription rights will take place from 18–30 May. After 30 May, the rights in the account will lose their value. It is important to bear in mind that holding or buying pre-emptive subscription rights does not mean a subscription for shares.
Read more: https://investor.lhv.ee/emissioon/
All detailed terms and conditions of the offer have been disclosed by LHV in the offer prospectus. The prospectus is available on the websites of LHV Group and the Financial Supervision Authority at investor.lhv.ee and fi.ee, respectively. Investors should read the information in the prospectus before making an investment decision in order to understand all the facts related to the investment. The approval of the prospectus by the Financial Supervision Authority does not constitute an approval of LHV Group or the securities offered. The shares are offered to the public in the Republic of Estonia only.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group employs more than 740 people. As of April, LHV’s banking services are being used by 342,000 clients, the pension funds managed by LHV have 135,000 active clients, and LHV Kindlustus protects a total of 148,000 clients. LHV’s UK branch offers banking infrastructure to 200 international financial services companies, via which LHV’s payment services reach clients around the world.
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