Investors oversubscribed Eleving Group's IPO by 1.2 times

Professional and retail investors from the Baltic countries and Europe showed a lively interest in Eleving Group's initial public offering (IPO): a total of 4,515 investors subscribed to the company's shares for a total of 33 million euros, as the base volume of the offer was oversubscribed 1.2 times. This was the largest IPO in Latvia organized by a privately held company.

Eleving Group saw strong demand from both retail and institutional investors. Institutional investors, including funds and family offices in the Baltics and Western Europe, constituted 72% of the overall allocation of issued shares.

At the same time, the offer attracted 4,466 retail investors, constituting 28% of the overall allocation of issued shares. Estonia led the retail demand split by Baltic states with 52%, followed by Latvia with 36% and Lithuania with 12% of subscriptions. The average retail subscription was 1,994 euros.

The company, in consultation with AS LHV Pank, acting as Lead Manager and Bookrunner, has set the final offer price at 1.70 euros per share. As a result, Eleving Group has decided to set the offer size to 29 million euros: allocate 27 million euros to primary proceeds and an additional 2 million euros as the over-allotment option. Upon completion of the offering, the expected free float of company shares will amount to 18.4%.

Retail investors were allocated 100% of their subscribed share amount. The price is equal for all investors. Investors who placed a subscription over the final offer price will receive the excess funds back.

Modestas Sudnius, CEO of Eleving Group:

"We extend our sincere gratitude to the more than 4,500 new shareholders who participated in Eleving Group's IPO, demonstrating their trust in the company and contributing to our ongoing success. The IPO was a significant achievement, marked by a well-balanced allocation between Baltic retail investors and strong institutional demand. The company successfully raised the necessary capital to support our growth strategy and ensure an attractive dividend yield for all investors. We are also grateful to our syndicate, led by LHV, Signet, and Warburg, as well as to all our advisors for their invaluable support throughout this process."

Mihkel Torim, Head of Investment Banking at LHV:

"Eleving Group's IPO marks a significant milestone as the largest private IPO in Latvia, underscoring the company's strong position in the market. As one of the few Baltic companies with a growing business presence beyond the region, Eleving Group brings valuable diversity to the local market. Despite the current challenging conditions for IPOs, the successful completion of this offering highlights investor confidence in the company's growth potential and its ability to navigate a complex global environment."

Trading of the Eleving Group shares on the Nasdaq Baltic Main List and Frankfurt Stock Exchange’s regulated market Prime Standard is expected to commence on October 16, 2024, under the ticker symbol ELEVR. The settlement of shares is expected to take place on or around October 14, 2024. 

LHV Pank acted as Lead Manager and Bookrunner, with Signet Bank, M.M.Warburg & CO, and Auerbach & Grayson Co. acting as Joint Bookrunners. Bankhaus Scheich Wertpapierspezialist AG, UAB FMI Orion Securities, and Redgate Capital AS as Sales Agents. Aalto Capital (Munich) acted as a Financial Advisor to Eleving Group and its shareholders.

About Eleving Group
 
Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products. Currently, 55% of the group's portfolio is located in Europe, 32% in Africa, and 13% in the rest of the world.
 
The Group's historical customer base exceeds 1.3 million customers worldwide, while the total volume of loans issued goes beyond EUR 1.8 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by over 2800 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies, as published by the Financial Times in 2020 and 2021.
 
The Group closed 2023 with strong financial results—its adjusted EBITDA stood at EUR 77.5 million, revenue at EUR 189.3 million, and adjusted net profit at EUR 24.5 million. Eleving Group’s net portfolio reached EUR 320.3 million. In 2024, Fitch, a leading credit rating agency, upgraded Eleving Group's rating from B- to B with a stable outlook.
 
For media inquiries

Arturs Cakars, Group Chief Corporate Affairs Officer, arturs.cakars@eleving.com
 
For investors

Edgars Rauza, Investor Relations Manager, edgars.rauza@eleving.com