Up to 46.3 million shares up for grabs in Coop Pank IPO next week

Coop Pank CEO Margus Rink.
Coop Pank CEO Margus Rink. Source: Siim Lõvi/ERR

Estonian capital-based Coop Pank disclosed the conditions for the initial public offering (IPO) of its shares beginning next Monday, Nov. 18, during which it will issue up to 32.2 million new shares and expects to raise €37 million of additional capital to finance its development strategy.

According to the prospectus for the public offering, listing and acceptance for trading of Coop Pank shares, the bank wishes to issue up to 32.2 million new shares during the IPO, bringing the total number of shares up to 94.4 million, the bank said in a press release on Tuesday.

In addition to the issue of new shares, as a part of the IPO, some existing minority shareholders are to sell a total of up to 14.1 million shares to new investors, bringing the total of shares to be made available in the IPO up to 46.3 million.

Retail and professional investors may indicate their wish to purchase Coop Pank shares, which will range in subscription price from €1.15-1.30 per share, during the subscription period from Nov. 18-29. Depending on the final offer price, the total volume of the IPO may reach approximately €55 million.

During the IPO, the bank intends to raise an additional equity capital of €37 million in order to finance its development strategy and the expansion of its business. In the even of a successful IPO, the current equity of €57.3 million can be increased to €95.9 million.

The bank expects both professional and retail investors to become its shareholders in the course of the IPO, Coop Pank CEO Margus Rink said.

"We want to make a share of Coop Pank a true people's share, which will be actively traded on the stock exchange and attract many shareholders," he said. "During the first years, we see ourselves mainly as a growing company, but according to dividend policy, beginning in spring 2022, the bank is expected to start paying out dividends in the amount of 25 percent of annual profit."

Preference to be given to customers

In case of oversubscription, preference will be given to retail investors and, above all, Coop customers, said Lauri Lind, a spokesperson for IPO financial adviser LHV.

"Preferential distribution for retail investors is valid for up to 2,500 shares, and for those who sign up during the first week — for up to 5,000 shares," Lind said. "During the IPO, however, Coop Pank wants to provide its customers with the preferential distribution of up to 10,000 shares."

Following the successful issue of its shares, Coop Pank will be listedon the main list of the Nasdaq Tallinn Stock Exchange (TSE). Trading in Coop Pank shares is expected to begin on or about Dec. 9.

Based on Estonian capital, Coop Pank is one of five universal banks operating in Estonia. It has 15 branch offices and 28 banking points throughout the country. As of the end of September, 56,300 clients were using the bank for their daily banking. The primary shareholder of the bank is domestic retail chain Coop Eesti, which comprises 330 stores.


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Editor: Aili Vahtla

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