Market announcement

Title

Subscription outcome of LHV Group share offering

Message

Yesterday, on 1 June 2022, the public share offering of LHV Group in the form of
rights issue was concluded. All in all 11,694 investors participated in the
subscription, subscribing in total EUR 43.6 million worth to the offered new
shares.

LHV Group offered investors 694,444 new ordinary shares with the option to
increase the number of the offer shares to up to 972,222. The subscription
period commenced on 18 May 2022, at 10.00 and concluded on 1 June 2022, at
16.00. The price of one offer share was EUR 36, of which EUR 1 was the nominal
value and EUR 35 was the share premium.

Due to over-subscription, the Supervisory Board of LHV Group exercised its right
to increase the volume of the offering to the maximum allowable extent, whereas
the share capital of LHV Group is increased by EUR 972,222 and 972,222 new
ordinary shares with the nominal value of EUR 1 will be issued and allocated
within the offering. As a result of issuing new shares, the new nominal amount
of share capital of LHV Group will be EUR 31,542,453 after registering the
increase of the share capital in the Estonian Commercial Register.

In accordance with the Secondary Offering, Listing and Admission to Trading
Prospectus registered by the Estonian Financial Supervision and Resolution
Authority on 16 May 2022 (the Prospectus), the Supervisory Board of LHV Group
resolved the outcome of the offering, emission size and the allocation of the
offer shares pursuant to the following principles:

  * all pre-emptive subscription rights and subscription orders of the same
    subscriber were summed up;
  * in case the investor subscribed to the offer shares through a nominee
    account and the holder of the nominee account had disclosed information
    requested in the Prospectus to the registrar of the Estonian Register of
    Securities (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
    offer shares to the investor);
  * all subscribers who owned, on 1 June 2022, as at the end of the business day
    of the Nasdaq CSD settlement system (Day of Fixation), the same number of
    pre-emptive subscription rights as the number of offer shares that they
    subscribed to, were allocated the offer shares that they subscribed to in
    full (Guaranteed Allocation);
  * within the Guaranteed Allocation, to 10,386 investors 563,194 offer shares
    were allocated, which constitutes 57.9% of the total offer volume;
  * all of the 6,319 subscribers who subscribed to more offer shares than they
    had pre-emptive subscription rights as at the Day of Fixation, were
    allocated the offer shares proportionally to the number of offer shares
    subscribed to (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, the minimum threshold of 100 offer shares
    subscribed to was set, below which corresponding subscription undertakings
    were fulfilled in full amount. Subscriptions exceeding this treashold were
    fulfilled to the extent of 50.7%;
  * within the Additional Allocation, 409,028 offer shares were allocated
    considering the above, which constitutes 42.1% of the total offer volume;
  * the remaining subscription undertakings to 239,857 offer shares, which could
    not be allocated within the Guaranteed Distribution and Additional
    Distribution in accordance with the above principles and which exceeded the
    maximum number of ordinary shares to be issued under the offer, i.e.,
    972,222, were cancelled.

"Confidence in LHV's plans and activities is strong. Our offering was
oversubscribed 1.75 times. It is gratifying that the emission turned out to be
attractive to both existing and new investors. We had taken into account that
the subscription period would take place in a tense environment and against the
background of declining stock markets. I would like to thank investors for their
trust - all in all, this is a worthwhile result that will allow LHV to
capitalize the new bank to be established in the UK and also increase the
group's capital buffers," Madis Toomsalu, CEO of LHV Group commented.

New shares are expected to be transferred to the securities accounts of
investors on or about 3 June 2022 (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 is expected to commence on or
about 14 June 2022, after increasing of the share capital of LHV has been
registered in the Estonian Commercial Register and ERS.

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. The Group employs more than 740 people. As of April, LHV's banking
services are being used by 342,000 clients, the pension funds managed by LHV
have 135,000 active clients, and LHV Kindlustus provides insurance protection to
a total of 148,000 clients. LHV's UK branch offers banking infrastructure to
200 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])