INVL Baltic Real Estate, the NASDAQ Vilnius exchange-listed company that invests in real estate, intends to issue and publicly offer shares with a value of 10.071 million euros.
It is being proposed to a meeting of shareholders on 28 October 2015 to set a minimum price of 0.35 euro per share for the issue. Valued at this price, the capitalization of INVL Baltic Real Estate is 15.1 million euros.
"This issue of shares aims to finance the acquisition of 6,500 square metres of premises in the Vilnius Gates complex and to balance the company's ratio of debt and equity capital before it becomes a closed-end type investment company. We hope that both existing shareholders and new investors will participate actively in the new share issue," INVL Baltic Real Estate CEO Andrius Dauksas said.
He said that after placement of the new share issue, INVL Baltic Real Estate would seek the status of a closed-end type investment company, essentially becoming similar to a fund. It is planned to transfer the management of INVL Baltic Real Estate to INVL Asset Management, part of Invalda INVL, one of the leading asset management groups in the Baltic countries.
"The real estate in good locations that INVL Baltic Real Estate manages is an attractive investment which offers prospects for both dividends and growth in value," said Andrius Dauksas.
After shareholders approve the new issue of shares, the offering will proceed when its prospectus is approved by the Bank of Lithuania.
INVL Baltic Real Estate manages some 51,700 square metres of real estate premises in Vilnius and Riga. In the first half of this year, the company had revenue of EUR 2.685 million and net profit of EUR 617 thousand.
