The Bank of Latvia has approved prospectuses submitted by two largest shareholders of AS DelfinGroup – SIA L24 Finance and SIA EC finance – for the public offer to sell part of their DelfinGroup shares. Thus, investors in Latvia, Lithuania and Estonia will have the opportunity to purchase up to 4.66 million DelfinGroup shares. The offer price is 1.35 euros per share. The subscription period will last from May 22 to June 2 inclusive.

According to the approved prospectuses by the Bank of Latvia, two largest shareholders of DelfinGroup will offer to sell a relatively small part of their shares via public offering in order to increase the free float of the shares and therefore also increase the liquidity of the shares, and to diversify their assets and investments.

During the public offerings, L24 Finance will offer up to 3.15 million shares, while EC finance will offer up to 1.51 million DelfinGroup shares.

The current share price of DelfinGroup on the stock exchange is 1,515 euros (as of May 17 at the time of the end of the Nasdaq Riga stock exchange trading session), and, following the information obtained from Nasdaq Riga, the volume weighted average share price from February 1, 2023, until April 30, 2023, was 1.51 euros. During the public offering, the shares will be offered for 1.35 euros per share (it is more than a 10% discount from the volume weighted average share price in the previously mentioned trading period).

Detailed information about the public offerings of DelfinGroup shares is published on the website www.shareoffering.lv.

"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," explained Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup.

DelfinGroup revenues in the first quarter of 2023 increased by 46% compared to the same period last year, reaching 11.1 million euros. The company's EBITDA increased to 3.9 million euros, which is 53% more than in the first quarter of 2022, while profit before taxes increased by 16% and reached 1.8 million euros. In addition, DelfinGroup loan portfolio has increased by 9% since the beginning of the year, reaching 73.5 million euros.

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 investors with a good dividend yield and maintaining growth potential.

DelfinGroup ensures regular income for investors through its unique dividend policy in the Baltic market. As a result, shareholders have received dividends of up to 50% of the company's profit each quarter. Based on dividend payments made by the company until May 16, 2023, over the last 12 months, DelfinGroup has paid 5.5 million euros in dividends, or 0.121 euros per share. This provided shareholders with a very good dividend yield of 8%, based on the share price at the closing of the May 16, 2023 trading session on the Nasdaq Riga stock exchange. Meanwhile, based on the dividends paid over the last 12 months, at the offer price of 1.35 euros, the dividend yield would be 9%.

Based on information included in the offering prospectuses, the largest shareholders of DelfinGroup are L24 Finance (55.13%), EC finance (18.22%), and 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 AS DelfinGroup shares by (1) SIA L24 Finance; (2) SIA EC finance. 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 AS DelfinGroup

DelfinGroup is a licenced 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 loans (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 the first quarter of 2023, the company's net loan portfolio grew to EUR 73.5 million, while its EBITDA reached EUR 3.9 million, with profit before taxes of EUR 1.8 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.

         For further information, please contact:
         AS LHV Pank
         Phone: +372 6800400
         E-mail: info@shareoffering.lv
         
         Linda Eltermane,
         DelfinGroup Head of PR
         Phone: +371 26189988
         E-mail: IR@delfingroup.lv