IPO: Eleving Group geht in Riga und Frankfurt an die Börse

Mittwoch, 11. September 2024

Pressemitteilung der Eleving Group S.A.:

Eleving Group Announces its IPO plans and intention to list on the Nasdaq Riga Stock Exchange’s Baltic Main List and on the Frankfurt Stock Exchange’s regulated market (Prime Standard)

With the IPO, Eleving Group aims to offer investors an opportunity to invest in one of the fastest growing, Baltic-headquartered, and Luxembourg-domiciled fintech companies operating in vehicle and consumer financing segments across 16 markets and 3 continents.

The planned IPO is expected to primarily consist of the issuance of new shares by Eleving Group and a potential sale of existing shares as an upsize option.

Eleving Group plans to use the net proceeds of the IPO to develop the business of the Group and its consolidated subsidiaries by launching new products, opening new markets, and continuing portfolio development in its existing markets. In the short term, the net proceeds may be allocated to paying down existing debt to lower financing costs and for general corporate purposes.

Details on the IPO

The Offer Shares shall be offered by way of a) a public offer of ordinary shares to retail investors in Latvia, Estonia, Lithuania, and Germany (Retail Offering) and b) a private placement to qualified investors within the meaning of Article 2(e) of the Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market (Prospectus Regulation) in certain selected member states of the European Economic Area and to other selected investors in reliance on certain exemptions available under the laws of respective member states (Institutional Offering).

The exact structure and timing of the IPO are subject to, among other things, prevailing market conditions and the timing of receiving necessary approvals from the Commission de Surveillance du Secteur Financier (CSSF), obtaining relevant corporate approvals, and concluding necessary agreements.

Eleving Group has appointed a wide group of local and international well-reputable banks and bookrunners, such as AS LHV Pank as the Lead Arranger and Bookrunner in connection with the IPO, while Auerbach Grayson & CO LLC, Signet Bank AS and M.M. Warburg & CO (AG & Co.) KGaA have been appointed as joint book-runners for the IPO. Bankhaus Scheich Wertpapierspezialist AG, UAB FMI Orion Securities, and Redgate Capital AS have been appointed as Sales Agents. Aalto Capital (Munich) acts as a Financial Advisor to Eleving Group and its shareholders.

CEO of Eleving Group Modestas Sudnius:
„Eleving Group has established itself as a successful company and a trusted partner for over a decade in the capital markets by issuing around EUR 400 million in bonds and in 12 years of business by serving more than 1.3 million clients worldwide. During this time, we have become one of the leading and most competitive exporters of fintech services with Baltic origins. It is now time to give the broader public the opportunity to be part of our growth through the IPO. We are confident that with IPO proceeds, the company will be able to establish its goals and continue successfully growing its global expansion. Investors will invest in a well-governed, highly profitable, and expanding business that aims to pay semi-annual dividends with a targeted payout ratio of over 50%.“

CFO of Eleving Group Māris Kreics:
„The IPO route is a long considered and deliberated decision for our company that fits perfectly into our strategy of diversifying the Group’s capital structure. With this IPO, we are not only giving investors from the Baltics and Germany the opportunity to be part of an ambitious and globally oriented business, contributing to the growth and dynamics of the overall Baltic capital market but also gaining the resources to facilitate further growth of the company. We intend to use the funds raised to scale up the Group’s business in existing and future markets. Furthermore, we intend to develop and offer new products in the foreseeable future, primarily testing their efficiency in the Group’s existing geographies. And finally, a proportion of the funds raised will be used for short-term liquidity management purposes and for partial repayment of the Group’s liabilities.“

Company profile

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, with Kredo and Tigo as the segment’s flagship brands. 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 around 2800 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies published by the Financial Times in 2020 and 2021.

Key growth information of Eleving Group

Eleving Group closed six months of 2024 with a record half-year profitability, reaching a net profit of EUR 15.4 mln (+26% to 6M23), increasing revenues to EUR 102.0 mln (+21% to 6M23) and adjusted EBITDA to EUR 43.6 mln (+28% to 6M23), while the net portfolio landed at EUR 342.5 mln (+21% to 6M23).

Dividend policy

The Group aims to provide shareholders with semi-annual dividends. For dividends to be paid to investors with a 50% payout ratio, the equity ratio (post dividends) must be above 20%. A 40% payout ratio would apply if the equity ratio after dividends is in the 15-20% range. If the post-dividend equity ratio is below 15%, the target dividend payout ratio would be 30%. In exceptional cases, if the equity ratio after dividends is above 25%, a reasonably higher dividend payout ratio may be decided. More details: https://www.eleving.com/dividend-policy-2024