Eleving Group will launch an initial public offering of shares

The non-bank lender “Eleving Group” will start the initial public offering (IPO) of shares in the Baltics and Germany on September 23.

During the IPO, “Elevating Group” will offer the opportunity to subscribe for up to 24.5 million ordinary shares, or 20.7% of “Elevating Group” shares, and the price is set in the range of 1.6 to 1.85 euros per unit . The final price of one share will be specified after the end of the public offer.

The aim of the company, by issuing the new shares for further business development, is to raise capital up to 30 million euros, keeping the opportunity to increase the offer by 10 million euros, in which existing shares. The proposed width of the price of one share anticipates the capitalization (value) of “Elevating Group” before issuing new shares in the width of 160 to 185 million euros.

Private investors from Latvia, Estonia, Lithuania and Germany will be able to subscribe to “Elevating Group” shares through a public offer, by placing a share subscription order in their bank’s investment department or by using the services of a bank broker. The offer will also be available privately to accredited institutional investors from Europe.

According to the IPO prospectus, the net proceeds from the share issue will be used to expand the business by introducing new concept products, opening new markets, as well as strengthening positions in existing markets.

In the medium term, “Elevating Group” expects to almost double the size of the business. In the short term, part of the net proceeds of the issue are expected to be directed to the repayment of existing debts to reduce the financing costs of “Elevating Group”, as well as corporate purposes another.

As a result of the IPO, the shares are expected to be listed on the official list of “Nasdaq Riga”. The IPO will last until October 8.

“Eleving Group” has named “LHV Pank” as the main organizer of the IPO, while “Signet Bank”, “Auerbach Grayson & Co” and “MM Warburg & Co” have been named as co-organizers of the issue. Several sales representatives from Europe and the USA will also work on the IPO implementation, and “Aalto Capital” will provide financial consultation for “Elevating Group” and its shareholders.

The CEO of “Elevating Group” Modests Sudņuis states that the company has issued bonds of around 400 million euros in more than ten years.

Sudnuis expresses confidence that with this IPO the development and dynamics of the Baltic capital market will be encouraged, as well as laying a stronger foundation for the future business growth of “Elevating Group”.

After the IPO, the company plans to pay dividends to shareholders on a semi-annual basis. In order to be paid out to shareholders with a target payout ratio of 50% of profit, the equity share (after dividends) must exceed 20%.

It was already reported that the turnover of the concern of the “Elevating Group” last year was 191.1 million euros, which is 8.9% more than in 2022, while the profit of the concern increased by 69.6%, reaching 23.4 million euro.

“Elevating Group”, founded in 2012 under the name “Mogo Finance”, currently operates in 16 global markets, offering financial services in the transfer and consumption sectors. The group includes the vehicle financing segment brands “Mogo”, “Primero”, “Renti” and “OX Drive”, as well as the consumer financing brands “Kredo”, “Sebo”, “Tigo” and “Express Credit”. The total number of loans granted by the group is around EUR 1.5 billion.

Currently, 55% of the group’s portfolio is located in Europe, 32% in Africa and 13% in the rest of the world. After the name change, the “Mogo” brand has been retained​​​​​​as a product brand both in Latvia and is also represented in all vehicle financing markets in the product portfolio of “Elevating Group” . The headquarters of the organization is in Latvia. “Elevating Group” carries out economic activities in the Baltics and Europe, in the Caucasus and Central Asian regions, as well as in East Africa.

The company “Mogo” was registered in 2012, and its share capital is five million euros. The real beneficiary of the company is Aigars Kesenfelds. “Mogo” offers rental, modification and car rental services in Latvia.