LHV to launch Tallinn's first IPO in six years

By bne IntelliNews March 30, 2016

LHV Grupp will fulfill a long-term promise to investors when it launches an IPO on the Tallinn Stock Exchange in May, a company executive told local media on March 30. The float will be first on the Estonian capital market since 2010.

Erkki Raasuke, a board member at the Estonian financial services company, told ERR LHV would like to take advantage of the fact that Estonia is “a good place to run a financial business”. His statement follows an announcement on March 29 that an initial public offering (IPO) will be launched between May 2 and May 16. The company plans to place 2mn shares on the market at a price of €6.95 per share.

“There’s always been room for good business [on the stock market], and Estonia certainly isn’t a bad place to do business with financial services,” Raasuke said. LHV will use the capital raised to “grow existing business,” the company said in a statement. 

Founded in 1999, LHV Group offers banking and pension fund services to Estonians. The company claims it has over 80,000 banking customers and over 130,000 customers of its pension fund services.

The last IPO on the Tallinn Stock Exchange took place in May 2010, when the shares of Premia Foods began trading. According to the  bourse's annual report for 2014, the bourse's market cap stood below €1.7bn, representing a drop of 10.6% compared to 2013. Turnover in 2014 totalled just €127.4mn, a plummet of 32%.

LHV has long told investors it will eventually list. During public discussion last year, the company refused to offer detail on planned price or volume.

 

 

Related Articles

Poland eyeing second LNG terminal

Gaz-System has selected a contractor to carry out a feasibility study on the construction of a second Polish LNG terminal, the state-owned gas grid operator said on March 27. Poland has recently ... more

Latvia heads off Russian gas mischief with legislation on strategic companies

The Latvian parliament passed amendments to national security and commercial laws on March 23, handing the state the power to block the sale of companies considered strategic. The legislation will ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss