NEO Finance IPO is successful: over EUR 0.6 M is raised, shares are to be listed in the stock exchange
AB NEO Finance, a Lithuanian fintech startup which administers the largest Lithuanian P2P lending platform Paskolu klubas, in addition to providing the Neopay payment initiation service (PIS), has successfully carried out its IPO. In total, the company has sold 192 907 shares for the amount of EUR 605 728.
In the nearest future it is planned to list NEO Finance shares, in Nasdaq Vilnius First North market, dedicated to fast growth potential small and medium companies. NEO Finance is the first Baltic fintech startup to enter the stock exchange.
“I would like to thank everyone who have expressed their confidence in our company. A successful IPO allows us to implement our expansion plans faster and moreeffectively, in order to continue path of succesful value creation to our clients and shareholders“ – said Evaldas Remeikis, chair of the board at NEO Finance.
IPO price is set
During the IPO, 409 offers were submitted for the amount of EUR 644 616. The average offered share price was equal to EUR 3.34, or 6% higher, than the starting price set by the company.
After evaluation of all investors‘ submissions, NEO Finance Board had set the final IPO price to EUR 3.14 per share, valid for all investors. Board approved all bids.
“Those who offered a higher share price, will be reimbursed excess amount this week” – said Deividas Tumas, member of the Board at NEO Finance.
NEO Finance was the first in Lithuania to carry out IPO as Dutch auction. Although, every potential investor was able to bid their own price, the final established share price is applied to all investors.
The total approved share emission amount is 21% higher than the minimum IPO amount. After IPO results, the valuation of NEO Finance is EUR 11.5 M.
Investments by the current lenders
“We are glad that the largest portion of the shares has been acquired by the current investors in loans. On average, several hundred shares were bought. We really appreciate the fact that the current investors in loans trust in our long-term success, thus invest both in loans and in the company itself” – said Deividas Tumas, member of the board at NEO Finance.
In total, 291 private persons and legal entities have bought company shares. Origin of investors is following: 66% from Lithuania, 10% fromEstonia, 8% from the Netherlands, the rest – of other countries‘.
This is the first time in Lithuania, when the company shares were sold via custom-made internet platform, which accounted for 91% of all IPO shares. The remaining 9% were distributed via the Baltic‘s banks.
“We consider IPO as a very valuable experience, which has allowed us not only attract the funds, but also receive a lot of valuable feedback on how to further improve our services. In addition, we had an opportunity to spread the NEO Finance message across the wider international investor community” – said Evaldas Remeikis.
Further expansion to the Baltics and Europe
The funds attracted during the IPO will be employed for Company‘s expansion: the fintech startup has an ambitious goal of becoming a PIS leader in Lithuania, as well as to start providing the service in other countries.
In the spring, NEO Finance has opened a branch in the Netherlands -- namely NEO Finance B.V. -- the goal of which is to attract lenders from the Benelux countries.
“Last week, we participated in a number of meetings with Dutch investors. They were impressed by the fact that we hold an e-money institution licence, the practice of keeping investors’ money separately from the company’s own funds, the level of regulation of P2P in Lithuania and supervision of Bank of Lithuania,” – said Mr. Remeikis.
NEO Finance administers P2P lending platform Paskolu klubas, where people are lending to and borrowing from people. Currently, the platform is the largest in Lithuania: in May 2019, it issued over EUR 1.6 M worth of consumer credits.
NEO Finance also provides the payment initiation service (PIS) for e-shops, under the brand of Neopay. Curretly, the Company adminsters all the settlements performed in such e-shops as: Tiketa, Edrauda, Manogilė.lt, Vienasaskaita.lt, and others. Currently, PIS is the fastest-growing service of the Company.