D.Maikštėnas, Director of Ignitis Group, on the largest initial public offering in the Baltic States: We plan to attract 1%. Lithuania GDP Business

At a press conference on Monday, Finance Minister Vilius Šapoka stated that Ignitis grupė’s initial public offering is an extremely important step not only in the life of the group, but also in Lithuania.

“This is a major event of the decade in Lithuanian energy and a leap in the capital market. In Lithuania, this means more green energy, more energy security, more investment, ”said V. Šapoka.

This is a major event of the decade in Lithuanian energy and a leap in the capital market, thinks V. Šapoka.

Darius Maikštėnas, Chairman of the Board and CEO of Ignitis Grupė, added that the IPO of Ignitis grupė is the largest IPO of the Baltic States ever.

“Today is a historic date for us, a historic event and we feel a great responsibility towards the entire country. During these two weeks, we plan to raise a share capital of more than 1%. Lithuania GDP. This is a great responsibility and a great impact on the entire economy, the development of all energy, and especially green energy, in the region, ”said D. Maštėnas.

In these two weeks, we plan to raise equity capital of more than 1 percent. Lithuania GDP. This is a great responsibility and a great impact on the entire economy, said D. Maikštėnas.

The funds raised will be used by the group for investments. Although Ignitis Group also finances investments with borrowed funds, it is expected that by attracting sufficient funds from equity capital, it will be possible not only to implement strategic development plans, but also to pay a stable and growing dividend yield.

It will try to attract around 500 million

Ignitis grupė will offer to acquire a total of LTL 20.9 million. shares, which is 27.8 percent. the total issued share capital of the company.

So far, in the rare cases where state or municipal companies have been or are listed on the stock exchange, they have typically offered less than 10% to investors. Share.

D.Maikštėnas explained that the company has chosen to distribute the optimal number of shares, as much as is necessary to guarantee the best profitability indicators for shareholders and that they would be sufficient to finance the investment plan of the company.

According to the manager, so far state companies have not distributed such a number of shares on the stock market, because no one has made such an investment so far. Consequently, capital requirements were also significantly lower.

The price range of the initial public offering is 22.5 to 28 euros per share and the international deposit slip. Global Certificates of Deposit, RDA).

This means that the company should attract from 470.3 million. up to 585.2 million The market capitalization of the Ignitis Group would reach from 1,692 million euros. up to 2,105 billion euros.

“The final price of the share will be determined after collecting all the demand from large and retail investors during these two weeks,” explained D. Maikštėnas.

D.Maikštėnas stated that the distribution of shares, which started on Monday, will take place until October 1. The company’s shares are scheduled to begin trading on the Nasdaq Vilnius and London stock exchanges on October 7.

The Group’s securities will be distributed not only to large institutional investors, but also to retail investors in the three Baltic countries.

Over the next two weeks, company executives plan to meet with more than 100 investors, a variety of funds from the United States and European countries, including the Scandinavian and Baltic regions.

And residents who want to buy shares can apply directly through online banking. An investor is guaranteed at least 100 shares; whether you can buy more will depend on demand.

It is true that group managers and employees will be able to buy up to 200 shares. Priority over the acquisition of new shares is given to existing managers and employees of the Ignitis Group and former shareholders of the group’s subsidiaries Ignitis Ignitis gamyba and Energijos skirstymo operatorius (ESO) who sold their shares during the public offering and have not come forward. complaints about the public offering, share redemption or initial public offering (IPO) processes.

Although the main distributor is Swedbank, other large banks will also provide opportunities for clients to acquire shares in Ignitis Group.

D.Maikštėnas hopes that the company’s shares will attract retail investors not only from Lithuania, but also from Latvia and Estonia.

“For retail investors, this can be a very interesting investment because our business combines two very important things for investors. On the one hand, the business is resistant to various cyclical situations, as a large part consists of regulated network businesses and production capacity businesses protected by long-term contracts.

On the other hand, in addition to sustainable and resilient activities, we have a high growth potential, because we invest large funds in green production, increasing the value of the company ”, emphasized D. Maikštėnas.

I hope to inspire others

As Ignitis Group becomes a publicly traded company, financial analysts hope others will follow suit.

The same hope was expressed by Finance Minister V.Šapoka at the press conference.

“The path is not complicated and I hope that this example will inspire other companies, both public and private, to take this path,” said the minister.

And D.Maikštėnas expressed his hope that the distribution of shares of this volume on the stock exchange would represent a breakthrough in the local stock market.

“An issue of this size creates a completely different level of liquidity in the market: retail investors will be able to trade freely and there will be no liquidity problems,” added D. Maštėnas.

An issue of this size creates a completely different level of liquidity in the market, added D.Majštėnas.

A great transformation in a decade

Darius Daubaras, Chairman of the Supervisory Board of Ignitis Group, who prepared to list many foreign companies, stated that listing is an important event in the life of all listed companies; for the company it means a transition to a new stage in both development and governance. higher transparency and accountability requirements for investors.

D.Dubar assessed that the company is well prepared for the IPO and emphasizes the progress of the company over the last decade.

“The company has become a leader in the national sector and one of the most expensive state-owned companies,” D. Dubar evaluated the transformation.

The company has become a leader in the national sector and one of the most expensive state companies, D. Daubaras evaluated the transformation.

D.Maikštėnas agrees that over the last decade the group has undergone a radical transformation as it has gone from traditional energy to renewable energy, and from a local company it has become a regional player operating in all three countries Baltics, Finland and Poland.

The company operates wind and solar power plants and plans to reach 4 GWe of green production capacity by 2030.

“We are unique in this region because we do not have the old polluting technologies related to coal, nuclear energy and other dirty and unsafe technologies. We constantly develop our investment portfolio, which is growing; recently we have announced large investments in marine and solar energy” said D. Maikštėnas.

We are unique in this region because we do not have the old polluting technologies related to coal, nuclear energy and other dangerous and dirty technologies, emphasizes D.Maikštėnas.

The funds raised will be invested in business development

After the implementation of the IPO, the State of Lithuania, through the Ministry of Finance, will continue to be the main shareholder of Ignitis grupė, with 72.2%. the authorized capital of the company.

Ignitis Group plans to use the funds received from the IPO for business development, to invest in distribution networks (eg network construction, smart meters, digitization, etc.), the green production segment and other business needs.

A working group created by the Ministry of Finance concluded at the end of February that the Ignitis Group will need between 5 and 6 billion euros by 2030. investment in euros,