Kalve Coffee’s IPO exceeds the initial capital raising target by 16%
Specialty or premium coffee roaster KalveCoffee announces that 1,255 investors took part in the initial publicoffering (IPO), raising gross proceeds of EUR 1.16 million, primarily earmarkedfor the company's further development. The company hence exceeded its initialtarget of EUR 1 million by 16%.
"We thankeveryone who decided to participate in the public offering, therefore becominga part of the Kalve Coffee family.This trust will help us to implement our development plans and to introduce ourbrand to coffee lovers outside Latvia in the near future," says Gatis Zēmanis, co-founder and Chairmanof the Board of Kalve Coffee.
"We plan toannounce the details of the shareholder loyalty programme, eligible toinvestors with at least 100 shares, in a separate announcement before theadmission of shares to trading on Nasdaq First North Riga, which is anticipatedto be this coming Friday,” Zēmanis added.
96% of the demandcame from Latvian investors, with the balance primarily from Estonianinvestors. The transaction includes the previously-flagged second investmentinto the company’s shares by well-known Latvian basketball player Dāvis Bertānswhich will take place via the conversion of a loan into shares at the sameprice as the IPO. All investors will be fully allocated their orders as thecompany reached its capital raising target within the EUR 1.5 million cap.
“Despite the modestoffering size we observed meaningful participation from institutional investorsin this investment case,” says IvarsBergmanis, partner of ViaClarus,the company’s financial adviser in connection with the offering. “Having nowexecuted a third Nasdaq Riga First North IPO I am convinced that it is proof ofits merit in providing funding, as well as international visibility forambitious and transparent Latvian companies such as Kalve Coffee.”
“Kalve Coffee IPO results reflect theconfidence and trust of the investors supporting businesses based on localcapital. This trust reinforces the company’s transparency, good corporategovernance principles, and commitment to delivering the highest value to itspartners. Congratulations to each shareholder and Kalve Coffee on this milestone, which marks an exciting chapterahead,” says Justīne Ignatavičute, Head of Capital Markets at ZAB Eversheds Sutherland Bitāns SIA,acting as the legal counsel on the issue.
According to the Information Document of AS Kalve Coffee, the offer consisted of a public offer open toprivate investors in Latvia and Estonia and an institutional offer directed toqualified investors. The current shareholders have entered into an agreementagreeing not to sell, transfer, or otherwise dispose of their shares for aperiod of 18 months.
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