Subscribe to LHV Group shares and invest in the LHV world
Subscription of shares will take place from 18 May to 1 June 2022 trading of the pre-emptive subscription rights from 18 May to 30 May 2022.
If you are not a client of LHV, log in to your Internet Bank and subscribe to shares there or visit a branch of your bank and ask an adviser to help you.
Main reasons to participate in the issue
We exceed our existing 5 year plan, in particular:
Interest income growth accelerates
- Increase of Euribor to 1% increases profits 50%
- Loan portfolio growth continues growth continues rapidly and exceeds the plan
- Loan portfolio quality remains very strong
UK fee revenues are growing
- Doubling of UK customers' monthly fees
- Staying on schedule for obtaining the banking licence for the UK bank
- Expansion into new customer segments in the UK after obtaining a licence
Issue of LHV shares
Issue size
LHV Group will issue 694,444 shares or, if oversubscribed, up to 972,222 new shares. As a result of the issue, the number of LHV Group shares will thus increase to 31,542,453 shares. The capital raised will be used to capitalise the new bank to be established in the UK and to ensure the capitalisation of the financial group.
Rights arising from the shares
The nominal value of an LHV Group share is EUR 1. All LHV Group shares are ordinary shares. All of the present and new shareholders have the same rights of control and voting rights and rights to dividends. The new shares to be issued will entitle the holder to a dividend from the financial year 2022.
Subscription rights
Subscription rights will be granted to all shareholders of LHV Group who are entered on the list of shareholders as at the end of the business day of the Estonian Central Register of Securities settlement system on 13 May 2022. The subscription rights are expected to be transferred on 17 May 2022 to the same securities account of the shareholder where the shares were held. For every 44 shares held, a shareholder receives one new share subscription right. One subscription right guarantees one new share per subscription. It will be possible to sell and purchase subscription rights between 18 and 30 May 2022. Subscription rights can also be acquired on the stock exchange by persons who have not previously been shareholders of LHV Group. The holder of subscription rights has three options: to exercise the rights to subscribe for shares (including to subscribe for more shares than there are subscription rights), to sell the rights or to do nothing. If the shareholder does not want to do anything with the subscription rights, the subscription rights will be deducted from the shareholder’s account after the event. Trading subscription rights through LHV Pank is free of charge.
Subscription price
The subscription price per LHV Group share is EUR 36.
Listed on the stock exchange
LHV Group’s new shares will be listed on Nasdaq Tallinn on the Baltic Main List. After the listing, the bonds may be bought and sold freely on a regulated market. LHV currently has more than 24,000 shareholders, and around 66% of LHV shares are held by investors holding less than 5% of LHV Group. A broad investor base, combined with new shares to be issued, will give LHV Group’s shares greater liquidity on Nasdaq Tallinn.
Transparent reporting
LHV Group is committed to transparency for investors. As a public company, we prepare and publish quarterly reports and monthly performance reviews, providing a detailed overview of the business activities and risks of LHV Group companies.
Prospectus
The prospectus has been approved by the Financial Supervision Authority on 16 May 2022 and it is available on the websites of the Financial Supervision Authority and LHV Group at the following addresses fi.ee and investor.lhv.ee. Learn more about the prospectus and its Estonian translation.
The approval of the prospectus by the Financial Supervision Authority does not constitute an approval of LHV Group or the securities offered.
Let us invest together in the LHV world
The LHV financial group, based on Estonian capital, is about to take the next big step. We have an ambitious plan to expand outside Estonia and set up a new bank in the UK. We are launching a new share issue, and we are giving you the chance to support our plans. The vast majority of the capital raised will be used to finance the establishment of the bank in the UK once the necessary licence has been obtained. At the same time, we will increase LHV’s overall capitalisation to better prepare for future growth.
Making Estonia bigger
Our aim is to serve society by making financial services and capital increasingly accessible. In Estonia, we are actively mobilising deposits from people and businesses to help realise their plans and projects. We help you invest for the future and secure the assets you accumulate. Internationally, we also provide banking services to businesses that aim to increase the speed, convenience and accessibility of financial services through technological innovation. By supporting bold ventures and taking banking services developed in Estonia to the world, we are making Estonia bigger.
Public company with a broad investor base
LHV is owned by more than 24,000 Estonian investors. We have been a public company since 2015 and have also been selected as the company with the best investor relations on the Baltic stock exchanges. Our aim in our communications with you as an investor involves openness and transparency, and with it mutual benefit.
LHV is the biggest domestic capital provider in Estonia. We employ over 700 people, and our services are used by more than 500,000 customers. LHV payment services reach millions of end-clients around the world. We hold close to EUR 10 billion in client financial assets. In the area of everyday banking services, LHV Bank has grown into a quality leader and the third largest bank in Estonia. LHV Varahaldus is the second largest pension fund asset manager in Estonia.
Quality and innovation in financial services
We are innovative and offer our clients simple and convenient services. We implement our strategic strengths – investment, entrepreneurial, and technology expertise – to grow into a pioneering, influential, and viable financial group based on Estonian capital. We focus on the best client relationship, user convenience, and client experience.
As an investor, you too can participate in our plans and the value we create.
Subscription of LHV shares
Subscription
Subscription for shares will start on 18 May 2022 at 10:00 and end on 1 June 2022 at 16:00. Subscription for LHV shares in Estonia is open to the public and possible through all Baltic securities account administrators. Shares can be subscribed for more than the number of subscription rights in the account if the investor so requests, but also if the investor has no subscription rights in the account. The portion of the new shares by which the volume of the offer is increased and which is not covered by the subscription rights exercised will be distributed among the subscribers. In order to guarantee yourself the number of shares you want to receive in the allotment, remember that one subscription right entitles you to one new share. In order to subscribe for shares in LHV Pank, in addition to a bank account, you must also have an investment services agreement and Baltic securities account. You can, if necessary, sign the contract and open the account in the internet and mobile bank but subscription orders can only be submitted in the internet bank. At the time of the subscription, the amount of money required for the subscription must be available in your bank account from which you are submitting the subscription order and will be reserved until the shares are allotted. Subscription for and holding of LHV shares at LHV Pank is free of charge.
Allotment
The results and allotment of the issue will be known on or around 2 June 2022. New shares will be allotted in accordance with the subscription orders submitted, but the investor will only be guaranteed to receive the number of shares to the extent that the person concerned has pre-emptive rights to subscribe for shares. In excess of this amount, the shares will be allotted among the subscribers on a pro rata basis according to the subscription orders (but not more than the number of shares subscribed by the respective person). In the event of an oversubscription and an increase in the size of the offer, new shares will also be allotted to subscribers who do not have pre-emptive rights to subscribe for shares.
Listing
The first trading day for the new shares is expected to be on or around 14 June 2022.
Frequently asked questions
The public subscription of new shares in LHV Group will take place between 18 May and 1 June 2022.
LHV shares can be subscribed through all Baltic securities account managers. To submit a subscription order, contact your account manager.
It is important to note that the allotment of LHV Group shares is only guaranteed to those who have subscription rights on 1 June 2022.
Read more about what is a subscription right and how to obtain them.
If LHV subscription rights exist, a subscription application must be submitted in order to subscribe for shares. LHV clients can conveniently subscribe via the Internet Bank by selecting 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 detailed information, please see the prospectus.
All Estonian individuals and companies can subscribe for shares in the public share issue.
It is important to note that LHV Group shares are only guaranteed to be allotted to those who have subscription rights. In the event of an oversubscription and an increase in the size of the offer, shares will also be allotted to an investor who does not have pre-emptive rights to subscribe for shares.
Read more about what is a subscription right and how to obtain them.
In order to subscribe for shares, a subscription order must be submitted. To submit a subscription order, please contact your account administrator. LHV clients can conveniently subscribe via the Internet Bank by selecting Investing > Share subscription.
For detailed information, please see the prospectus.
An existing shareholder will receive one subscription right for every 44 shares held in his/her securities account at the end of the day on 13 May 2022. If the number of shares held by the shareholder does not result in a whole number of subscription rights, the number of subscription rights will be rounded up to the nearest whole number, with fractions of one being rounded down to one. That is, a shareholder holding less than 44 shares will still receive one pre-emptive subscription right, but a shareholder holding less than one share will receive zero pre-emptive subscription rights, i.e., they will not be entitled to pre-emptive subscription rights. For example, a shareholder with 1 to 44 shares receives 1 subscription right; a shareholder with 55 shares receives 55:44=1 subscription right; a shareholder with 125 shares receives 125:44=3 subscription rights; a shareholder with 0 to 0.99 shares receives no subscription rights.
LHV Group subscription rights can be purchased on the Tallinn Stock Exchange, if necessary. This is similar to the normal purchase of securities, but in this case it is a purchase of rights to guarantee participation in an allotment of new shares. It is not sufficient to hold subscription rights to participate in the allotment of shares; in order to participate in the subscription, you must also submit a subscription order for new shares in LHV Group.
Trading of subscription rights for LHV Group shares on the stock exchange will take place from 18 to 30 May 2022. In order to purchase subscription rights, you will need to have a Baltic securities account and, in the case of companies, LEI code. The price of subscription rights is shaped by demand and supply on the stock exchange. Theoretically, the price could be the difference between the market price and the subscription price of a share, which is also influenced by the time and liquidity premium. For example, if the share costs 39 euros on the stock exchange, then the price of the subscription right could be 39 – 36 = 3 euros.
For detailed information, please see the prospectus.
No limit has been set on subscription during issue. The smallest number of shares that can be subscribed for is one share, but the maximum number that can be subscribed for is 972,222 shares.
For detailed information, please see the prospectus.
In the event of an oversubscription, LHV Group will have the right to increase the number of shares offered by up to 277,778 shares, i.e., to approve a total issue size of up to 972,222 shares. Subscription orders backed by subscription rights are approved first. The remaining shares will be allotted among subscribers who have subscribed for more shares than they are entitled to subscribe for, or who have no subscription rights at all, on an individual basis in proportion to the number of shares subscribed for (but not more than the number of shares subscribed for by the respective subscriber). The results of the issue are expected to be known on or around 2 June 2022 and the shares are expected to be credited to shareholders’ accounts on or around 3 June 2022.
For detailed information, please see the prospectus.
The rights expire with no value to the non-subscribing shareholder, but, among other things, the number of shares to be allotted to oversubscribing investors can be increased in the event of an oversubscription on the basis of unused subscription rights.
If you do not have a Baltic securities account and would like to use LHV Pank as your account manager, select Info and Settings > Agreements from the left menu in LHV Internet Bank and conclude a Baltic securities account agreement.
Signing an investment services agreement and Baltic securities account agreement with LHV Pank is free of charge. We also do not charge a fee for holding Baltic securities.
The allotment of shares is personal. Thus, if you subscribe for shares from more than one account, your subscription orders will be aggregated and allocated among your accounts in proportion to the number of shares subscribed (but not more than the total number of shares subscribed by you from different accounts). For example, if you have 100 shares in your securities account and 40 shares in your pension investment account, and you are allotted a total of 70 shares, you will receive 50 + 20 shares respectively.
For more information, please visit investor.lhv.ee or read the prospectus available on the websites of the Financial Supervision Authority and LHV Group at fi.ee and investor.lhv.ee, respectively.
Subscribe to LHV Group shares and invest in the LHV world
Subscription of shares will take place from 18 May to 1 June 2022 trading of the pre-emptive subscription rights from 18 May to 30 May 2022.
This information constitutes an advertisement of securities within the meaning of EU Regulation 2017/1129/EU and does not constitute an offer of shares in AS LHV Group or a solicitation to purchase shares. The offer to acquire the shares will be made on the basis of a prospectus approved by the Financial Supervision Authority and made public on the day of the announcement of the public offer. The prospectus is available on the websites of the Financial Supervision Authority and AS LHV Group at fi.ee and investor.lhv.ee, respectively. Investors should read the information in the prospectus before making an investment decision in order to understand all the facts related to the investment. The approval of the prospectus by the Financial Supervision Authority does not constitute an approval of AS LHV Group or the securities offered. The shares are offered to the public in the Republic of Estonia only.
