First Day of Dealings on AIM
16 January 2007
Mobile Credit Baltic plc (“Mobile Credit Baltic” or the “Company”), the provider of immediate, short-term credit to borrowers in the growing markets of Finland, Estonia, Latvia and Lithuania, is pleased to announce that its ordinary shares have today been admitted to trading on the AIM market of the London Stock Exchange.
Mobile Credit Baltic will trade under the symbol ‘MCRB’.
Libertas Capital is both the nominated adviser and broker to Mobile Credit Baltic.
Rami Ryhänen, Chief Executive Officer of Mobile Credit Baltic, said: “We are pleased with the response of investors to our marketing and the valuation. The listing will raise the profile of Mobile Credit Baltic considerably. The listing will improve access to capital and help us build the Credit24 business in Estonia, Lithuania, Latvia and Finland.”
Placing statistics
Placing price per share |
150p |
Number of existing ordinary shares |
11,531,486 |
Number of placing shares |
2,532,329 |
Enlarged share capital immediately following the placing |
14,063,815 |
Placing shares as a percentage of the enlarged share capital |
18.0% |
Gross proceeds of the placing |
£3.8 million |
Net proceeds (approximate) of the placing |
£2.9 million |
Market capitalisation of the Company at the placing price |
£21.1 million |
ISIN |
GB00B1LD2G45 |
AIM symbol |
MCRB |
Further information
MCB Finance Group:
| Rami Ryhänen, Chief Executive Officer | +358 50 550 0262 |
|
|
Henry Nilert, Chief Financial Officer |
+44 7769 693 795 |
|
|
www.mobilecreditbaltic.com |
|
Libertas Capital:
| Andrew Raca | +44 (0)20 7569 9650 |
|
|
www.libertascapital.com |
|
Media enquiries:
Capital MS&L:
| Curtain / James Madsen | +44 (0) 20 7307 5330 |
|
|
|
For further details, the Admissions Document is available to download in PDF Format.
Further details, including the Admission Document in downloadable form, are available at www.mobilecreditbaltic.com.
Background and market opportunity
Mobile Credit Baltic was established to provide, through its subsidiaries, fast, convenient, easily understood and flexible credit solutions to retail customers in Finland and the rapidly growing Baltic countries of Estonia, Latvia and Lithuania (the Fenno-Baltic Region). The Company is a consumer finance business making short-term loans to private individuals. The Company currently offers short-term loans of between €100 and €500, with maturities between two weeks and three months, under its Credit24-branded websites to the Estonian and Finnish markets. Over time, the Company intends to offer larger medium-term loans. The Company operates broadly the same business model across its different national markets, yet remains flexible in terms of specific products offered.
Customers are charged one simple, transparent fixed sum (currently equating to a flat fee of 20 per cent of the value of the loan) to cover arrangement fees, interest payments and other fees. The Company does not require security as collateral for loans granted and the loan process has been designed to be simple with a straightforward application process leading to a rapid credit decision. The Company intends to increase the range of loan products available to customers in the future, and to develop customer loyalty programmes for repeat customers.
Additionally the Company will offer ancillary products and services to its growing customer base, including but not limited to insurances and product financing. Since it launched its operations in Estonia in August 2006 and in Finland in October 2006, the Company has experienced a greater than anticipated demand for its products. Collection performance has been in line with the expectations of the Company.
The objective of the Company is to become a leading unsecured credit provider in the Fenno-Baltic Region. The Company will differentiate itself principally through a strong Credit24 brand associated with transparent terms, ease of access and use, high-quality service and the building of long term customer relationships. The Company will maintain an ongoing relationship with its customers to maximise repeat business and reduce customer acquisition costs.
The Company’s business activities were established in 2005 by its founder Kai Karttunen, who identified wide-ranging potential for unsecured credit products in the Fenno-Baltic Region. The business was developed over the course of 2005 and 2006, and a team was assembled to develop the Company’s operations in the Fenno-Baltic Region’s consumer credit markets. The initial investors in the business consist of a group of international entrepreneurs, financiers and business leaders with domestic and international expertise. In August 2006 the Company started operations in Estonia followed by Finland in October 2006.
The Directors believe the intended target markets of Finland, Estonia, Latvia and Lithuania are particularly well suited to the introduction of the Credit24 brand and business model. In each case, they have relatively low existing levels of unsecured consumer credit, yet are part of the European Union. Macroeconomic conditions in the Baltics are favourable with economic growth rates ranging from 7.5 per cent. to 10.5 per cent per annum. Much of the GDP growth is driven by increased domestic consumption, which the Directors believe will also drive the consumer redit market.
The Directors intend to utilise the net proceeds of the Placing initially to grow and to increase the Company’s profile, grow and expand the business throughout the Fenno-Baltic Region.