Today, on May 22, the offer period of Latvian fintech company AS DelfinGroup shares started on Nasdaq Riga stock exchange. The subscription period will last until June 2 (15:30 Riga time). During the public offerings of shares, investors from Latvia, Lithuania, and Estonia will be able to purchase up to 4.66 million DelfinGroup shares. These shares are offered by the two largest shareholders of the company – SIA L24 Finance and SIA EC finance. The offer price per share is 1.35 euros.

The Bank of Latvia approved both prospectuses of the public offerings of shares on May 17. As part of the public offerings, L24 Finance offers up to 3.15 million shares, and EC finance – up to 1.51 million shares, which in total is 10.3% of all DelfinGroup shares. The announcement of the results of the public offerings is scheduled for June 5, while the transfer and settlement of the purchased shares is planned for June 6. Offer shares will be allocated proportionately (pro-rata) to the purchase undertakings received during the offer period.

The closing share price of DelfinGroup shares on the stock exchange on the day of approval of the prospectuses was 1.515 euros. However, the volume weighted average share price from February 1, 2023, until April 30, 2023, was 1.51 euros. Therefore, the shares will be offered with more than a 10% discount from the volume weighted average share price in the previously mentioned trading period.

"The plan of the two largest shareholders of DelfinGroup to sell part of their shares can be seen as a positive step, contributing both to the increase in the number of shares in free float and generally having a positive effect on the development of the capital market both in Latvia and the Baltics. With the public offer of shares, the liquidity of shares and trading volumes on the stock exchange will increase, which is beneficial for both existing and new investors and the stock exchange as a whole. Furthermore, investors have the opportunity to purchase shares at a fixed price below their current market value, diversifying their investment portfolios," explains Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup.

Among the Latvian companies that are currently traded in the Main List of the Nasdaq Baltic exchange, in 2023 DelfinGroup is the leader in terms of share trading volume and market capitalization.

DelfinGroup has distributed up to 50% of the company's profits as dividends every quarter so far, and the company plans to continue this practice. 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 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. Taking into account 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 currently are L24 Finance (55.13%), EC finance (18.22%), and AE Consulting (8.75%), while other shareholders own 17.9% of the shares.

Detailed information about the public offerings of DelfinGroup shares is published on the website www.shareoffering.lv. LHV Bank is the Global Lead Manager and Bookrunner of the public offerings.

In the prospectuses prepared by the shareholders, it is stipulated that the managing bank of the public offerings (LHV Bank) may combine both offerings in one and place them on the Nasdaq stock exchange system as one transaction.

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
         
         Aldis Umblejs,
         DelfinGroup Chief Financial Officer
         Phone: +371 26189988
         E-mail: IR@delfingroup.lv