Market announcement

Title

Subscription outcome of LHV Group share offering

Message

On Wednesday, 29 September 2021, the public share offering of LHV Group in the
form of rights issue was concluded. All in all 9,117 investors participated in
the subscription, subscribing in total EUR 49.4 million worth to the offered new
shares.

In total, LHV offered investors 745,294 new ordinary shares. The subscription
period commenced on 15 September at 10.00 and concluded on 29 September at
16.00. The price of one share on offer was EUR 34, EUR 1 of which was the
nominal value and EUR 33 was the share premium.

745,294 new shares with the nominal value of EUR 1 will be issued and allocated
within the offering. As a result of issuing new shares and after registering the
increasing of the share capital in the Estonian Commercial Register, the size of
the share capital of LHV Group will be EUR 29,864,167.

In accordance with the Secondary Offering, Listing and Admission to Trading
Prospectus registered by the Estonian Financial Supervision Authority on 13
September 2021 (the Prospectus), the Supervisory Board of LHV Group resolved the
outcome of the offering, emission size and the allocation of the offered shares
pursuant to the following principles:

  * The offered shares were only allocated to persons who had at least one pre-
    emptive subscription right for LHV shares pursuant to the Nasdaq CSD
    settlement system as of the end of the business day of 29 September 2021
    (Day of Fixation), all other orders of 744 subscribers for 46 thousand
    shares were cancelled;
  * All pre-emptive subscription rights and subscription orders of the same
    subscriber were summed up;
  * In case the investor subscribed to shares through a nominee account and the
    holder of the nominee account had disclosed information requested in the
    Prospectus to the registrar of the ERS and LHV Group, each such investor
    subscribing via a nominee account was considered as an independent investor
    during the allocation process (the nominee account holder is responsible for
    the allocation of the shares to the investor);
  * All subscribers who owned the same number of pre-emptive subscription rights
    as the number of offered shares that they subscribed to on the Day of
    Fixation by the corresponding person, were allocated the shares that they
    subscribed to in full (Guaranteed Allocation);
  * Within the Guaranteed Allocation, 688,795 shares were allocated, which
    constitutes 92% of the total offer volume;
  * All subscribers that subscribed to more offered shares than they had pre-
    emptive subscription rights for, were allocated shares in proportion to the
    number of pre-emptive subscription rights they had (as far as was
    mathematically possible), but not more than the number of offered shares the
    person subscribed to (Additional Allocation);
  * Within the Additional Allocation, 56,499 offered shares were allocated,
    which constitutes 8% of the total offer volume

"Interest in the share issue directed to LHV's existing shareholders was high.
The offer was almost two times oversubscribed. We will take great responsibility
for the good result and for the capital involved. Our future investment plans
are aimed at applying for an UK credit institution license and strengthening the
related capitalization, as well as ensuring a multiplying growth in Estonia,"
Madis Toomsalu, CEO of LHV Group commented.

New shares will presumably be transferred to the securities accounts of
investors on 1 October 2021 or a date near to that (during the settlement, new
shares will bear a temporary ISIN code). New shares will be listed and trading
with these on the main list of the Nasdaq Tallinn Stock Exchange will commence
presumably on 18 October or a date near to that, after increasing of the share
capital of LHV has been registered in the Estonian Commercial Register.

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, and LHV
Kindlustus. LHV employs over 620 people. As at the end of August, LHV's banking
services are used by 295,000 clients, the pension funds managed by LHV have
175,000 active clients, and LHV Kindlustus protects a total of 136,000 clients.
LHV's UK branch offers banking infrastructure to 170 international financial
services companies, via which LHV's payment services reach clients around the
world.




Priit Rum
LHV Communication Manager
Phone: +372 502 0786
Email: [email protected] (mailto:[email protected])