Secondary public offering of Coop Pank AS shares

Ellex partner in Estonia Gerli Kivisoo and Senior Associate Kadi Sink advised Coop Pank AS on the secondary public offer of their shares.

A secondary public offering (SPO) by the Estonian capital-based Coop Pank AS that ended this Tuesday was oversubscribed by more than fourfold, the bank announced Thursday.

In the course of the SPO, which ran from November 15-29, a total of 14,661 investors submitted subscription undertakings to a total of 32.2 million shares worth €64.5 million, oversubscribing the base volume of 7.6 million shares by 4.2 times, Coop Pank said in a press release. The offer shares were offered publicly only in Estonia.

The bank opted to use its right to increase the volume of the offering up to 10.1 million shares, bumping the total proceeds of the offering to €20.3 million. In allocating these offer shares, Coop Pank prioritized allocations to existing shareholders, investors in Coop Pank bonds as well as customers.

In a preemptive allotment, existing shareholders were allocated 86 percent of the total volume of the issue (€17.4 million), plus an additional up to 17 percent of the subscribed amount exceeding the preemptive allotment amount.

In second order, Coop Pank customers and investors of the bank’s bonders were likewise allocated 17 percent of the amount subscribed by them — accounting for 735,000 shares (€1.5 million). The remaining investors were allocated 5 percent of the amount subscribed by them — or 696,000 shares (€1.4 million). All subscriptions up to a €100 threshold were accepted in full.

“With the support of the additional capital, we will continue implementing our growth strategy,” said Margus Rink, chair of the management board of Coop Pank.

“We have promised that by 2027, the bank’s 10th anniversary, the bank’s market share will have grown up to 10 percent, we will have 150,000 active customers, our loan portfolio will exceed €2 billion, the cost income ratio (CIR) will be below 50 percent and the return on equity will be over 15 percent,” he continued. “We want more and more of our current investors and customers to become part of the bank’s success story.”

Trading with the bank’s offer shares on the Nasdaq Tallinn Baltic Main List is slated to commence on or about December 7.

Linked Experts

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Gerli Kivisoo
Partner / Estonia