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.