On May 20, 2024, the public offering of shares by the Latvian fintech company DelfinGroup began. Investors from the Baltic region now have the chance to acquire up to 26.4% of DelfinGroup’s shares at a price 12.8% lower than the average share price over the last three calendar months. This public offering presents a significant opportunity to invest in a profitable, growing company with one of the highest dividend yields on the Baltic stock exchange – 8.3%.
The subscription period for the public offering of DelfinGroup shares starts on May 20, 2024, at 10:00 and ends on June 3, 2024, at 15:30. Shares can be purchased through all Baltic retail banks that offer stock and investment services. The shares are being offered at a price of 1.09 euros per share, which is 12.8% lower than the average stock price over the last three calendar months. Comparing the offer price with the company’s dividend payments over the past 12 months (including the planned dividend payment in June), the dividend yield per share would be 8.3%.
Upcoming Dividend Payments Offer Quick Returns
All shareholders, including those who purchase shares in this newly started offering, are entitled to the planned dividends. The proposal, which will be confirmed at the upcoming annual general meeting of shareholders, includes a quarterly dividend of 0.0088 euros and an annual dividend of 0.0178 euros per share. Together, these payments amount to 0.0266 euros per share. Final decisions regarding the planned dividend payments will be made by shareholders at the annual general meeting on May 30, 2024.
Sellers Remain Major Shareholders
The sellers are two major shareholders of DelfinGroup, companies ALPPES Capital and Curiosity Capital, who, together with other related entities, own nearly 47% of DelfinGroup’s shares. The basis for the offer is up to 8,985,000 DelfinGroup shares, representing 19.8% of the company’s total share capital.
The shareholders decided to sell shares through a public offering because selling a larger number of shares on the stock exchange might not be feasible due to low liquidity. The sellers are the Kesensfeld family, who are offering approximately half of their current total holdings for public sale, while the remaining portion will keep them as major shareholders. Additionally, the sellers are subject to a lock-up period, which prohibits them from selling the remaining shares for almost two years. The current owners will use the proceeds from the sale to develop new business directions in different sectors from DelfinGroup’s core activities.
Strong Financial Performance
By offering innovative solutions and developing sustainable technologies, the Latvian company DelfinGroup has grown in all business segments during the first quarter of this year. The company’s revenue increased by 26% in the first quarter, reaching 14.3 million euros, compared to the same period last year. DelfinGroup has been profitable every year since 2010, consistently achieving high growth rates. The company also demonstrates competitive performance on the stock exchange, offering good dividend returns to investors while maintaining growth potential. DelfinGroup ensures regular income for investors through its unique dividend policy in the Baltic market. As a result, shareholders have received up to 50% of the company’s profits as dividends every quarter. Based on dividend payments made in 2023, DelfinGroup paid dividends totaling 3.3 million euros, or 0.0729 euros per share. Although DelfinGroup does not have business operations in Estonia, 72.4% of its nearly 8,900 shareholders are Estonian individuals and companies.
