RIGA, Latvia – Specialty or premium coffee roaster Kalve Coffee announces that 1,255 investors took part in the initial public offering (IPO), raising gross proceeds of EUR 1.16 million, primarily earmarked for the company’s further development. The company hence exceeded its initial target of EUR 1 million by 16%.
“We thank everyone who decided to participate in the public offering, therefore becoming a part of the Kalve Coffee family. This trust will help us to implement our development plans and to introduce our brand to coffee lovers outside Latvia in the near future,” says Gatis Zēmanis, co-founder and Chairman of the Board of Kalve Coffee.
“We plan to announce the details of the shareholder loyalty programme, eligible to investors with at least 100 shares, in a separate announcement before the admission of shares to trading on Nasdaq First North Riga, which is anticipated to be this coming Friday,” Zēmanis added.
96% of the demand came from Latvian investors, with the balance primarily from Estonian investors. The transaction includes the previously-flagged second investment into the company’s shares by well-known Latvian basketball player Dāvis Bertāns which will take place via the conversion of a loan into shares at the same price as the IPO. All investors will be fully allocated their orders as the company reached its capital raising target within the EUR 1.5 million cap.
“Despite the modest offering size we observed meaningful participation from institutional investors in this investment case,” says Ivars Bergmanis, partner of ViaClarus, the company’s financial adviser in connection with the offering. “Having now executed a third Nasdaq Riga First North IPO I am convinced that it is proof of its merit in providing funding, as well as international visibility for ambitious and transparent Latvian companies such as Kalve Coffee.”
“Kalve Coffee IPO results reflect the confidence and trust of the investors supporting businesses based on local capital. This trust reinforces the company’s transparency, good corporate governance principles, and commitment to delivering the highest value to its partners. Congratulations to each shareholder and Kalve Coffee on this milestone, which marks an exciting chapter ahead,” 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 to private investors in Latvia and Estonia and an institutional offer directed to qualified investors. The current shareholders have entered into an agreement agreeing not to sell, transfer, or otherwise dispose of their shares for a period of 18 months.
Offer timetable
- Start of the offer period: 13 November 2024 at 10.00, Riga time
- End of the offer period: 29 November 2024 at 15.30, Riga time
- Announcement of the outcome of the tender and results of the award: 2 December 2024
- Settlement of the offer: 4 December 2024
- First trading day on Nasdaq Riga First North: 6 December 2024
