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Subscribe to LHV Group shares and give a boost to the growth of Estonian capital

The subscription of shares will take place from 15 to 29 September 2021 and the trading of subscription rights from 15 to 27 September 2021.

If you are not a customer of LHV, then please log in to your Internet bank and subscribe for shares there, or visit your bank's office and seek help from an advisor.

Offering of LHV shares

Volume of offering

The volume of the LHV Group share offering is up to 745,294 new shares. As a result of the offering, the number of LHV Group shares will increase up to 29,864,167 shares. The capital raised by this offering will be used to increase the LHV’s capitalization to support the application for a banking licence for LHV UK Limited in the United Kingdom as well as the growth of LHV’s loan portfolio.

Rights arising from the shares

The nominal value of each LHV Group share is 1 euro. All LHV Group shares are ordinary shares. All existing and new shareholders have identical control and voting rights as well as rights to dividends. The issued new shares will provide the right to a dividend starting from the 2021 financial year.

Subscription rights

Subscription rights shall be given to all LHV Group shareholders entered in the list of as at the end of the business day of the settlement system of Nasdaq CSD SE on 8 September 2021. The subscription rights shall be transferred by 15 September 2021 to the shareholder’s same securities account on which the shares were held. For each 40 shares owned, the shareholder will receive one subscription right. One subscription right gives the right to one share. During the period 15 – 27 September 2021 the subscription rights can be sold and purchased. On the stock exchange, persons who have not previously been shareholders of LHV Group can purchase subscription rights. The owners of subscription rights have three options: to exercise the rights to subscribe to shares (they can also subscribe to more shares that they have subscription rights for), sell their rights, or do nothing. If the shareholder does not wish to do anything with their subscription rights, the rights will be removed from the shareholder’s account after the end of the event. Trading with subscription rights through LHV Pank is free of charge.

Subscription price

The subscription price of LHV share is 34 euros.

Listing on the stock exchange

The new LHV Group shares will be listed in the Baltic Main List of Shares on the Nasdaq Tallinn Stock Exchange. After being listed, LHV Group shares are freely transferable on the regulated market. LHV Group currently has nearly 17,000 shareholders and about 65 % of LHV Group’s shares belong to investors whose share in LHV Group is less than 5%. The broad investor base along with new shares to be issued gives LHV Group’s stock greater liquidity on the Nasdaq Tallinn Stock Exchange.

Transparent reporting

In investor relations LHV Group has set a goal of transparency. As a publicly traded company, we prepare quarterly reports and overviews of monthly results, in which we provide a detailed look at the LHV’s business activity and the related risks. In 2019, LHV Group was recognized as a company with the Best Investor Relations on the Nasdaq Tallinn Stock Exchange.

Prospectus

The prospectus has been approved by the Estonian Financial Supervision Authority on 13 September 2021 and it is available on the websites of the Estonian Financial Supervision Authority and LHV Group, respectively fi.ee and investor.lhv.ee. Review the prospectus and the Estonian language translation.

The approval of the prospectus by the Estonian Financial Supervision Authority cannot be considered to be an endorsement of the issuer or the securities being offered.

Joint growth support for Estonian capital

Our goal is to be a financial group with a broad investor base, serving society’s interests, and making financial services and capital more available. In Estonia, we actively raise deposits from people and companies to help them carry out their plans and execute their endeavours. Investing into the future generates new capital. Internationally, we offer banking services to companies whose goal is to use technological advances to increase the speed, convenience and availability of financial services.

LHV manages Estonian residents’ long-term pension investments, actively investing fund assets into local businesses among others. Our new business area is helping clients to insure their assets in a high-quality and innovative manner. LHV Group is a publicly traded company and as an investor – You can also be a part of our activities and value we create.

The largest provider of domestic capital in Estonia

We hold nearly 10 billion euros worth of customer financial assets. LHV Pank has become a quality leader in everyday banking services, and is now the third-largest retail bank in Estonia. LHV Varahaldus is the second-largest retirement fund management company in Estonia. Close to 500,000 clients use LHV’s services. In addition to that, LHV’s payment services reach millions of end clients around the world. We employ more than 600 people and LHV’s owners include nearly 16,700 Estonian investors. LHV has been a publicly traded company since 2015 and has been recognized as the company with the best investor relations on the Baltic markets.

Quality and an innovative approach to financial services

We are innovative, and offer our clients simple and convenient financial services. We apply our strategic strength – experience in investing, business and technology – to build a pioneering, influential and viable financial group based on the Estonian capital; helping businesses and people save and invest and be the most engaged and understanding international financial partner for companies developing financial technology. We position ourselves as a full-service home bank. We have developed contemporary banking services and focus on providing the best customer relations, user convenience and customer experience. At the same time, we are bringing Estonian financial services to the international market, becoming a company exporting financial services. Our aim on the LHV Varahaldus side of our operations is to offer depositors the best long-term yields, while LHV Kindlustus offers high-quality and innovative services in the field of non-life insurance.

A unique investment opportunity

In order to support LHV’s growth, the offering of new LHV Group shares is organised. The capital raised will be used to increase the financial group’s capitalization in order to carry out the ambitious plan of establishing a new bank in the United Kingdom and grow LHV’s business volumes in Estonia. Naturally, according to banking regulations, we need to maintain a specified amount of capital for each loan we issue. In addition, we want to be as prepared as possible to take advantage of the still unknown opportunities should they arise. As a shareholder of LHV Group, you have the opportunity to be a part of all of these developments.

Subscription of LHV shares

Subscription

Subscription of shares begins on at 10:00 on 15 September 2021 and ends at 16:00 on 29 September 2021. Subscription of LHV shares in Estonia is public and possible through any Baltic securities account manager. If desired, more shares may be subscribed to than subscription rights held. In such a case, the shares not subscribed by investors holding subscription rights are distributed. To subscribe shares at LHV Pank, it is necessary to have, in addition to a bank account, an investment services agreement and a Baltic securities account. The agreement can be concluded and the account opened in the internet bank. At the time of subscription, you must have the necessary funds for subscription on your account. The transaction amount will be blocked until the shares are distributed. It is free of charge to subscribe and hold LHV Group shares in LHV Pank.

Distribution and allocation

The outcome of the offering and allocation of shares will be determined on or around 30 September 2021. The new shares will be distributed in accordance with the subscription undertakings, but not exceeding the subscription rights held by the respective subscriber. In excess of this quantity, new shares shall be allocated to investors proportionally to the number of subscription rights held (but in a number not larger than the number of shares that they subscribed to).

Listing

The estimated first trading day for the new shares is expected to be on or about 18 October 2021.

Frequently asked questions

The public subscription of the new shares in LHV Group will take place in the period 15 – 29 September 2021.

LHV shares can be subscribed through all Baltic securities account managers. To submit a subscription order, contact your account manager.

Please be aware that LHV Group shares will be distributed only to those who hold subscription rights.

Read more about what is a subscription right and how to obtain them.

In case You own LHV subscription rights and want to participate in the offering, you will have to submit a subscription order to subscribe to shares. LHV clients can conveniently subscribe to shares in the internet bank under Investing > Share subscription.

Holding of and subscribing to LHV shares in LHV Pank is free of charge. The necessary investment services agreement and Baltic securities account for subscription can be conveniently concluded in the internet bank.

For more information, see the prospectus.

The offering is public and aimed primarily at the existing shareholders. All individuals and companies in Estonia can subscribe to shares in the public offering.

Please be aware that LHV Group shares will be distributed only to those who own subscription rights.

Read more about what is a subscription right and how to obtain them.

In case You have LHV subscription rights and want to participate in the offering, you will have to submit a subscription order to subscribe to shares. To submit a subscription order, contact your account manager. LHV clients can conveniently subscribe shares in the internet bank under Investing > Share subscription.

For more information, see the prospectus.

Existing shareholders will receive one subscription right for every 40 shares held on their securities account as of the end of 8 September 2021. Fractions under one shall be rounded to the nearest whole number. Investors will receive one subscription right if they have less than 40 shares.

If desired, additional LHV Group subscription rights can be purchased on the Tallinn Stock Exchange. The process is similar to ordinary purchases of shares, only in this case, rights to participate in a subscription are purchased instead of the shares themselves. Once you have LHV subscription rights and want to participate in the offering, you will have to submit a subscription order to subscribe LHV Group shares. Subscription orders submitted by those who did not hold any subscription rights will be cancelled.

Trading of subscription rights to LHV Group shares on the stock exchange will take place from 15 – 27 September 2021. To purchase subscription rights, a Baltic securities account and for companies, an LEI code are required.

For more information, see the prospectus.

No limits values have been established for subscription in this offering. The minimum subscription is one share, and it is not possible to subscribe more than the volume of the offering – 745,294 shares.

For more information, see the prospectus.

The number of shares will remain the same. First of all, subscription orders secured by subscription rights will be satisfied. The remaining shares will be distributed among subscribers who have subscribed shares in excess of the subscription rights held, and this will take place in proportion to the subscription rights that belong to them (but not more than the number of shares subscribed by the relevant subscriber). Subscription orders submitted by those who did not hold any subscription rights will be cancelled. The outcome of the offering is expected to be determined on or about 30 September 2021 and the new shares will be expectedly transferred to shareholders’ accounts on or about 1 October 2021.

For more information, see the prospectus.

The rights will expire with no value for non-participating shareholders; however, in the case of oversubscription of the issue, the number of shares distributed to oversubscribed investors can be increased.

If you do not have a Baltic securities account and want LHV Pank to be your account manager, choose Information and Settings > Agreements in the left menu in LHV internet bank and enter into a Baltic securities account agreement.

Entering into the investment services agreement and Baltic securities account agreement is free of charge in LHV Pank. We do not charge a fee for holding a Baltic securities account, either.

Visit investor.lhv.ee or see the prospectus available on the websites of the Estonian Financial Supervision Authority and LHV Group, respectively fi.ee and investor.lhv.ee.

Subscribe to LHV Group shares and give a boost to the growth of Estonian capital

The subscription of shares will take place from 15 to 29 September 2021 and the trading of subscription rights from 15 to 27 September 2021.

If you are not a customer of LHV, then please log in to your Internet bank and subscribe for shares there, or visit your bank's office and seek help from an advisor.

This announcement is an advertisement of securities within the meaning of EU Prospectus Regulation No 2017/1129/EU and does not constitute or form a part of any offer or solicitation to purchase or subscribe for the shares. The offer to acquire the shares is made solely on the basis of the prospectus that is approved by the Estonian Financial Supervision Authority and made public on the day of the announcement of public offering on the websites of the Estonian Financial Supervision Authority and of AS LHV Group on addresses fi.ee and investor.lhv.ee/en respectively. Before making an investment decision, investors should read the information published in the prospectus in order to understand all details related to the investment. The approval of the prospectus by the Estonian Financial Supervision Authority should not be regarded as endorsement to AS LHV Group or the offered securities. The shares will be publicly offered only in the Republic of Estonia.

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