Hepsor shares oversubscribed almost nine timesBack
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The initial public offering of the real estate development company Hepsor was oversubscribed 8.7 times by investors.
The company raised 10 million euros from investors as part of its IPO ending on Friday. A total of 6,745,135 shares were subscribed by 19,621 investors, meaning that the original offering of 777,001 shares was oversubscribed more than 8.7 times. Hepsor responded by increasing the number of shares offered to 854,701. After the increase in share capital, the subscribed shares account for 22.17% of the company’s shareholding.
Due to the large oversubscription, shares will not be distributed to the members of the supervisory board and management board or their companies. 77% of the IPO shares will be distributed in a public offer and and 23% in an institutional and private offer .
All investors participating in the public offer and subscribing for less than 8548 shares are allocated independent of the time of the subscription 100% of subscribed shares up to 20 shares subscribed for. The total combined subscribed amount exceeding that, is allocated approximately 7.3% of subscriptions submitted until 12.11.2021 and approximately 4.3% of subscriptions submitted starting from 13.11.2021. All investors who subscribed for at least 8548 shares until 12.11.2021 are allocated approximately 7.5% of total subscribed shares and investors who subscribed at least 8548 shares from 13.11.2021 are allocated 5% of total subscribed shares.
The employees and companies they control will receive a total of 8281 shares.
Hepsor’s management board member Henri Laks said that such an impressive oversubscription is great recognition for the company and shows the desire of investors to participate in the growth story of local businesses. “The interest in subscription for Hepsor shares was high and exceeded our boldest expectations many times over. We are very pleased about this and grateful to all the subscribers. We take this unexpectedly good result and the capital we have raised with a great sense of responsibility,” said Laks and adding that, due to the high level of interest, the distribution of shares was very difficult to carry out, both in terms of early subscribers and in view of the very large total number of subscribers.
Hepsor’s chairman of the supervisory board, Andres Pärloja said that the result, which exceeds all expectations, shows that Hepsor’s growth ambition has been noticed. “The investors have given a clear mandate to realise that ambition. Nothing happens overnight in real estate, but in the long run there is no doubt – it is a class of assets where every investor should at least have some involvement,” said Pärloja.
Hepsor plans to use the funds raised in the IPO to finance its continued rapid growth and new development projects.
The shares are expected to be transferred to the investors’ securities accounts on or around 24 November 2021. Trading in the shares on the Baltic Main List of the Nasdaq Tallinn Stock Exchange is expected to begin on or around 26 November 2021.
The offer was organised by LHV Pank AS, legal advisor Ellex Raidla Advokaadibüroo OÜ and communication advisor Miltton JLP.
Hepsor is one of the largest real estate developers in Estonia and is moving in the same direction in the Latvian market. Hepsor has been the first developer in the Baltics to implement several innovative engineering and technical solutions that make the buildings they construct more energy-efficient and thus more environmentally friendly. Green thinking and innovation are essential elements of Hepsor’s work. To date, the company has created 40 development projects, 1,400 new homes and 23,000 sq. m of modern commercial space. The company’s development portfolio includes 22 development projects with a total area of 140,000 sq. m.
The founders and owners of Hepsor Group are Andres Pärloja (33.25%), Kristjan Mitt (33.25%) and Henri Laks (16.6%), with Lauri Meidla involved as a financial investor (16.9%).
Member of the Management Board