|Indexo, IPAS (875500AT8JI5HU41AY20)
|2.2. Iekšējā informācija
In its latest stock offering, IPAS "Indexo" (hereinafter - INDEXO) has secured 9,011 million euros, marking the largest raised amount in the Latvian public equity market in the past decade. Although it is less than the planned 12.5 million euros, INDEXO believes that it is sufficient to successfully complete the banking licensing process. Missing amount is intended to be covered by investment commitment letters from individual large INDEXO shareholders. Currently the new bank licensing document review is continuing and the approval from the European Central Bank is required for obtaining a commercial bank license upon recommendation from the Bank of Latvia.
"I want to express gratitude to everyone who has placed their trust in us and participated in the new INDEXO stock offering. The raised capital provides us with confidence that we will meet regulatory requirements and will soon be able to commence banking services," says Valdis Siksnis, Chairman of the Board at INDEXO and one of the founders.
Throughout the latest stock offering, investors subscribed to 750 923 shares, with a total of 2,867 share purchase orders submitted. The average transaction size was 262 shares or 3,144 euros. Approximately 70% of investments came from Latvian investors, while the remaining 30% were primarily from Estonian investors. Out of the total investment volume, approximately 4,8 million euros were contributed by existing INDEXO shareholders, and around 4,2 million euros came from new investors.
The additional commitment letters that are planned to be received from some individual large investors will be used only in situation if the public markets will not be available for subsequent capital raises after the bank license has been obtained.
"Despite the challenging market situation, we have managed to set a record and execute the largest equity capital raise on the Riga Stock Exchange in the last 10 years. Along with the initial public offering in the summer of 2022, INDEXO has attracted a total of 16,5 million euros on the Riga Stock Exchange. The achieved result is not only a significant stimulus for the development of the Latvian capital market but also a verification of the necessity of INDEXO Bank. Over 5,000 people have become our shareholders, eagerly anticipating the opening of accounts in the new INDEXO bank. Our recent stock offering confirms that people desire changes in the Latvian banking sector and want to participate in implementing these changes," continues V. Siksnis.
Like the initial public offering in 2022, INDEXO conducted the new stock offering independently, without the involvement of investment banks. This approach has allowed INDEXO to reduce issuance costs and provide more value to the company's shareholders.
As previously reported, since mid-2022, INDEXO has been developing a project for the establishment of a new bank, and the ongoing capital raise is the final step before obtaining a banking license and commencing bank operations.
INDEXO has already submitted a banking license application to the Bank of Latvia, which is currently under review in cooperation with the European Central Bank. Throughout 2023 work has been completed on a secure and modern banking IT infrastructure. INDEXO Bank's mobile application has been developed with all necessary integrations for an impeccable customer experience. Additionally, fundamental products for individuals have been created, including current accounts, payments and cards, savings accounts and deposits, loans and, of course, convenient administration for third-pillar pensions. Upon receiving the license, INDEXO Bank will commence its operations serving individuals, while services for businesses will be developed in 2024.
Disclaimer: Approval from the European Central Bank is required for obtaining a commercial bank license.
INDEXO is an asset management company licensed by the Bank of Latvia, which offers modern 2nd and 3rd pillar pension saving plans in Latvia. INDEXO is the fastest growing pension management company in the Baltics with more than 127 thousand customers and more than EUR 915 million in assets under management.
INDEXO was established in 2017 by a group of 30 experienced business representatives and managers with an aim to fight for a better financial environment in Latvia. INDEXO vision is to become a financial services group that provides modern, personalized services empowering Latvia’s people for their prosperity.
Additional information is available at www.indexo.lv.