We advised Estonian real estate company Arco Vara on the secondary public offering of shares and listing new shares on the Main List of the Nasdaq Tallinn stock exchange.
Great interest from the market
The issue of Arco Vara was extremely popular among investors with the offering being over-subscribed 4,8 times.
According to Miko Niinemäe, CEO of Arco Vara, the result exceeded even the boldest expectations. “At the same time, several other issues of shares and bonds took place and the number of options investors have to invest money is growing. The issue of Arco Vara turned out to be very successful. This confirms our company’s previous belief that people’s desire to invest is growing and real estate development continues to be attractive. I am pleased that Arco Vara has become very attractive for both customers and investors over the past year, ” said Niinemäe.
6,000 new investors
The transaction involved offering Arco Vara shares to retail investors in Estonia raising EUR 2.25 million. Over 6,000 new investors participated in the offering resulting in the number of Arco Vara investors increasing close to 10,000.
When allocating shares, the company prefers new retail investors in the first round, who were not on the list of shareholders of Arco Vara as of the end of the business day on 19 September, and are therefore classified as new investors. 6,116 such investors participated in the public offering. The target of 1,000 new investors was thus significantly exceeded. Over the past year, the number of Arco Vara shareholders has increased sevenfold.
Focus on development of complete living environments
The EUR 2.25 million raised from the issue will be used by Arco Vara to finance their following projects. The additional issue is part of the company’s goal to steadily sell more than 200 homes a year by 2024.
Arco Vara is an international real estate group operating mainly in Estonia and Bulgaria. The group’s parent company Arco Vara AS was established in Estonia in 1992 and has been listed on the Nasdaq Tallinn stock exchange since 2007.
The main activity of Arco Vara is the development of complete living environments and related commercial real estate. In addition, the group earns license fees from agreements with real estate agencies offering real estate brokerage and valuation services under its trademarks in Estonia, Latvia, and Bulgaria.
Our services and client team
We advised the client on all legal issues during the project, including in relation to drafting the offering document and advising on corporate as well as applicable regulatory and disclosure-related questions.
Our project team was led by counsel Kätlin Krisak, supported by associate Kamilla Alma Vilderson. Senior associate Robin Teever advised the client on corporate matters related to the offering.