Today at 10:00 a.m., pension management company IPAS Indexo (hereinafter – INDEXO) commences its Initial Public Offering (IPO), during which it plans to attract EUR 7.49 million in order to create a new bank.
INDEXO will issue a total of 535,000 shares. The share price will be EUR 14. During INDEXO IPO process, 15% of the company’s share capital will be offered. In line with the IPO price, INDEXO market capitalization or total share value will be EUR 49.959 million. There will be no minimum share purchase limit, that is, investors will be able to buy any number of shares at 14 euros per share.
“INDEXO future bank will be created with a goal to achieve circulation of financial value concentrated in Latvia – by attracting local capital from a broad range of people, we will establish a bank that supports Latvian business growth, serves Latvian residents, and the value created in this business will be invested in further development and returned to shareholders – Latvian residents and business representatives. With the INDEXO IPO we invite people to participate in creating this value and becoming shareholders in their own pension management company, and in the future – also in a bank,” said Valdis Siksnis, one of the founders of INDEXO and Chairman of the company’s board.
INDEXO IPO process offers shares in the pension management company and in the future it is planned that the new INDEXO bank will be a subsidiary of the pension management company. During this year, INDEXO will submit an application for a commercial bank license in accordance with the legislation and will gradually introduce banking services – starting from retail services and followed by corporate banking.
In line with the development plans described in INDEXO IPO prospectus, INDEXO plans that in 2023, the number of customers in the existing pension management business will exceed 100,000, and in 2024, INDEXO will manage investments worth more than EUR 1 billion. The new bank’s plans provide for attraction of about 40,000 customers by the end of 2023 and 145,000 by 2027. Also, INDEXO new bank plans a loan portfolio worth EUR 30 million by the end of 2023 and more than EUR 440 million in 2027.
According to INDEXO IPO prospectus, the IPO will officially close at 15:30 on July 11. Given that the time of accepting subscription applications may vary depending on the investor’s bank, INDEXO advises investors to submit their subscription applications by 12:00 on July 11.
INDEXO IPO Retail Offering will take place in Latvia and Estonia, giving the opportunity to subscribe for INDEXO shares to any interested party that has a securities account with a financial institution that is a member of the Nasdaq Riga stock exchange, as provided in the IPO prospectus. To subscribe for the shares, an investor must read the IPO prospectus and issue a subscription instruction to the bank with which he or she has a securities account.
In case of oversubscription, the shares will be allocated in accordance with the allocation principles described in the prospectus, giving preference to INDEXO third pension pillar customers (within Retail Offering) and the existing shareholders (within Shareholder Offering).
Following the IPO, INDEXO shares will be listed on the official Baltic List of the Nasdaq Riga stock exchange. Signet Bank is the Nasdaq auction arranger. Eversheds Sutherland Bitāns law firm is the legal counsel of the INDEXO IPO.
We invite you to learn more in a Zoom seminar “INDEXO GOES PUBLIC” conducted by INDEXO team at 11:00 on June 29. Please register here: REGISTER FOR OUR SEMINAR.
INDEXO is the fastest growing pension management company in Latvia by the number of customers as more than 80,000 customers have entrusted their pension management to INDEXO for a total sum of almost EUR 500 million. INDEXO was established in 2017 by a group of 30 experienced business people with an aim to bring the latest approaches in asset management to the Latvian pension market. INDEXO is built on the values of innovation, transparency, integrity, and strong business fundamentals, forming foundation for future growth.
More information is available at www.indexo.lv.
Bank (credit institution) licence is subject to authorization granted by European Central Bank based on Financial and Capital Market Commission’s (FCMC) proposal.
Disclaimer: This announcement is an unpaid marketing communication in line with the Prospectus Regulation and shall not be considered an investment advice or offer. Information provided hereby contains general future-oriented statements on the intention to launch an initial public offering (IPO) of INDEXO shares.
Any investment decision shall be made, considering the prospectus approved by the Latvian Financial and Capital Market Commission (FCMC). The approved prospectus has been published on INDEXO’s website (www.indexo.lv). The prospectus’ approval shall not be considered a share purchase proposal. Before investing in the offered shares, please read the prospectus carefully to learn about the potential risks and gains.