Estonian investment research company ENLIGHT Research today published the Initial Public Offering (IPO) share valuation for pension management company IPAS Indexo (hereinafter – INDEXO), providing a positive assessment.
ENLIGHT said in its assessment that over four years INDEXO has managed to capture about 9% of Latvia’s pension management market and at present the company is in a good position to challenge the commercial banking market. Entering the banking market, INDEXO will be able to address a market which is 20 times larger by revenue than the pension management sector.
According to ENLIGHT, the Latvian banking sector is in need of changes that can be ensured by new market entrants. Namely, there are four commercial banks dominating in the Latvian banking sector and these four banks have 98% of the Latvian bank customers as their clients. These banks also control about 85 percent of the market by issued loans. In the current market situation, the largest Latvian banks are not motivated in tough competition in pricing. As a result, Latvia has some of the most expensive mortgage loans in Europe. Also, as a result of low competition, Latvia has one of the lowest lending levels compared to the gross domestic product (GDP) in Europe.
ENLIGHT valuation has been commissioned by INDEXO in order to provide investors with market experts’ opinion about the company’s value. The entire content of the study is available here: https://research.enlightresearch.net/jsp/demoLogin.jsp?key=3512&x=aabbcc&resLibId=88707
INDEXO IPO process offers pension management company’s shares 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 line with the legislation and will gradually introduce banking services.
As reported previously, INDEXO IPO INDEXO will issue a total of 535,000 shares worth EUR 7.49 million. There will be no minimum share purchase limit, that is, investors will be able to buy any number of shares, starting with one share at EUR 14 per share.
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.
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.
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 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 intended IPO of INDEXO. Every investment decision must be based on a prospectus approved by the Latvian Financial and Capital Market Commission. An approved prospectus is published on INDEXO website (www.indexo.lv).
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