Hepsor opens IPO today

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This announcement is an advertisement and is not a prospectus within the meaning of Regulation (EU) 2017/1129 (the Prospectus Regulation) or a public offering announcement. Investors should not make any investment decisions regarding the securities referred to in this announcement based on information other than that contained in a prospectus approved by the Financial Supervision Authority (FSA) to fully understand the potential risks and rewards involved. Hepsor AS will publish additional information on the approval of the prospectus in accordance with the Prospectus Regulation and make the relevant information available on the FSA website (www.fi.ee) and the company’s website (www.hepsor.ee/investorile). Approval of the prospectus by the FSA should not be understood as the approval of the securities.

The real estate development company Hepsor begins an initial public offering of its shares to new investors with a view to listing its shares on the Baltic Main List of the Nasdaq Tallinn stock exchange.

Both retail and institutional investors can subscribe for the shares from 10 a.m. on 10 November to 4 p.m. on 19 November. The subscription price per share is 11.7 euros. The company wants to raise up to ten million euros from new investors. Detailed information can be found in the prospectus (active link) and on the Hepsor website.

The results of the IPO and the distribution of shares among investors are planned to be announced on or about 22 November 2021. The first trading day for Hepsor shares on the Baltic Main List of Nasdaq Tallinn is scheduled on or about 26 November 2021.

According to Henri Laks, Chairman of the Management Board of Hepsor, the IPO allows Baltic-region investors to invest in a fast-growing real estate development company operating in the Estonian and Latvian markets and the strongly positioned real estate sector in general. “We intend to use the funds to finance our continued rapid growth, as in the next four to five years, we plan to develop more homes and commercial premises than we have done in the previous ten years of operation,” said Laks. The company’s portfolio includes 22 new development projects at a preparatory stage and the total area of which will be approximately 140,000 square metres.

Laks said the IPO is to make Hepsor a listed company with the largest possible circle of owners. He added that Hepsor would be a growth rather than a dividend share, at least in the coming years, because Hepsor wants to reinvest profits in the company’s growth and new projects. “The IPO’s timing has to do with our rapid growth ambitions and the launch of several new large development projects, such as the Manufactory Quarter in North Tallinn,” said Laks.

Estonian investors wanting to subscribe for the shares should contact the account manager responsible for the investor’s securities account with the Estonian Securities Register and submit a subscription application during the offer period. Latvian and Lithuanian investors should contact a financial institution that is a member of Nasdaq Tallinn and submit a subscription application in the format accepted by the financial institution.

LHV Pank AS organises the IPO, and the legal advisor is Law Office Ellex Raidla.

Hepsor’s sales increased by 98% in 2020, reaching 38.8 million euros (from 19.5 million euros in 2019). The company’s net profit grew by 190% to 3.85 million euros during the same period (from 1.33 million euros in 2019). For the past four years (2017–2020), Hepsor has been consistently among the four largest residential developers in Estonia. Last year, it was ranked second in Tallinn, with 277 new apartments sold. Hepsor is also developing green offices, where it is the first in the Baltics to introduce several innovative and environmentally friendly engineering solutions. The year 2020 was also successful for the group’s Latvian companies, where sales revenue amounted to 4.9 million euros, accounting for almost 13% of the group’s sales revenue.

More information:
Henri Laks
Member of the Management Board of Hepsor AS
henri@hepsor.ee