Oma Savings Bank is planning an initial public offering and listing on the official list of Nasdaq Helsinki Ltd

Pörssitiedote - Valtakunnallinen
7.11.2018

OMA SAVINGS BANK PLC STOCK EXCHANGE RELEASE NOVEMBER 7, 2018, 8:00 a.m. EET

Oma Savings Bank is planning an initial public offering and listing on the official list of Nasdaq Helsinki Ltd

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, NEW ZEALAND, AUSTRALIA, JAPAN, HONG KONG, SINGAPORE OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

Oma Savings Bank Plc (“Oma Savings Bank”, “OmaSp” or the “Company”) is planning an initial public offering (“IPO”) and listing of its shares on the official list of Nasdaq Helsinki Ltd (“Nasdaq Helsinki”).

OmaSp is a growing Finnish bank and measured with the balance sheet total, the largest savings bank in Finland. Over 270 professionals provide nationwide services through OmaSp’s 40 branch offices and digital service channels to approximately 135,000 customers. OmaSp is focused primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations.

The objective of the contemplated IPO and listing is to improve the Company’s ability to continue to successfully implement its growth strategy and to improve its financial and strategic flexibility by providing the Company access to stock markets. The listing is also expected to increase the recognition and brand visibility of OmaSp among customers, employees and investors and thus enhance OmaSp’s competitiveness. The IPO will allow the Company to broaden its ownership base and thus increase the liquidity of the Company’s shares, and provide new shareholders with the opportunity to participate in the Company’s development. In addition, the contemplated listing would enable the Company to use its shares as consideration in potential acquisitions and employee incentive schemes.

Company is intending to raise gross funds of approximately EUR 35 million in the contemplated IPO, which would be used to strengthen Oma Savings Bank’s capital structure and support its growth strategy.

Pasi Sydänlammi, CEO of Oma Savings Bank:

“The target of the planned IPO and listing is to further enhance our ability to execute our growth strategy, as well as improve our financial and strategic flexibility. We already have strong evidence of continuous and profitable growth from the past years. Our financially sound bank has been one of the most profitable and efficient banks in Finland during the past years, and we want to cherish that also in the future by focusing on good customer experience and efficient operations. We target 10-15 percent annual growth in total operating income under the currently prevailing market conditions. The IPO would also enable new shareholders to participate in the development of the bank.”

Oma Savings Bank’s strengths

  • Oma Savings Bank’s operations are characterised by the following key strengths:
  • Profitable Finnish bank with a demonstrated ability to grow and operate efficiently
  • The Company operates in Finland, a stable and favourable operating environment
  • High quality full service offering for private and corporate customers
  • Comprehensive digital services and extensive branch network enable high quality and efficient service provision
  • Stable business profile
  • Strong funding base and liquidity
  • Attractive financial profile

Oma Savings Bank’s strategy

OmaSp strives to be a bank of satisfied customers that is local and close and offers the best service locally. OmaSp believes that excellent customer experience will speed up its profitable growth. The Company aims to keep its customer experience at a high level by focusing on development of value adding services according to customer needs, by reacting rapidly to changing customer needs by knowing its customers well, as well as by having high accessibility through advanced digital service channels and an extensive branch network. A strategic target is to pursue growth only if it can be achieved profitably and without taking excessive risks. High profitability is fostered by taking care of customer relationship profitability as well as by keeping funding costs at a low level in relation to the price of lending. In addition, the Company seeks to provide services as efficiently as possible in order to keep operating costs at a competitive level. The Company continuously monitors and optimises its operations, both at branch- and employee level and invests into digital channels to automatise service provision. Maintaining risks at a low level is based on the Company’s operations in the stable retail banking market segments in Finland, keeping customer and investment risk concentrations low, as well as maintaining a simple and transparent organisational structure. The Company maintains a strict credit policy and focuses on secured loans, such as mortgages, in its lending. In addition, the Company strives to manage risks by continuously maintaining solvency and liquidity at a high level.

Oma Savings Bank’s financial targets and dividend policy

Oma Savings Bank’s Board of Directors have set the following long-term financial targets:

  • Growth: 10-15 percent annual growth in total operating income under the current prevailing market conditions
  • Profitability: Cost-income ratio below 55 percent
  • Return on Equity (ROE): Return on Equity (ROE) over 10 percent in the long term
  • Solvency: Core Capital Ratio (CET1) of at least 16 percent

In connection with the Listing, the Board of Directors has adopted a dividend policy pursuant to which the Company targets a steady and growing dividend. The Company targets an annual dividend payout of at least 20 percent of the previous years’ profit for the accounting period.

Oma Savings Bank’s financial highlights

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The IPO

The contemplated IPO is expected to consist of a primary offering, in which the Company would issue new shares, and in conjunction with certain shareholders may sell shares. The shares would be offered to private individuals and entities in Finland, institutional investors in Finland and internationally pursuant to the applicable legislation, and employees and senior management of Oma Savings Bank.

The primary offering is intended to raise gross proceeds of approximately EUR 35 million, which would be used to strengthen the Company’s capital structure and support the Company’s growth strategy. In connection with the IPO, the Company and the selling shareholders would enter into customary lock-up agreements.

Danske Bank A/S, Finland Branch is acting as the global coordinator in the contemplated IPO. Carnegie Investment Bank AB, Finland Branch is acting as bookrunner (together with the global coordinator, the “Bookrunners”). Borenius Attorneys Ltd is acting as legal advisor to the Company and Castrén & Snellman Attorneys Ltd is acting as legal advisor to the Bookrunners.

Oma Savings Bank Plc
Board of Directors

Further enquiries

Pasi Sydänlammi, Chief Executive Officer, tel. +358 45 657 5506, pasi.sydanlammi@omasp.fi
Sarianna Liiri, Chief Financial and Administrative Officer, tel. +358 40 835 6712, sarianna.liiri@omasp.fi

Interview and further information enquiries:

Minna Sillanpää, Chief Communications Officer, tel. +358 50 66592, minna.sillanpaa@omasp.fi

 

Oma Savings Bank in short

OmaSp is a growing Finnish bank and measured with the balance sheet total, the largest savings bank in Finland. Over 270 professionals provide nationwide services through OmaSp’s 40 branch offices and digital service channels to approximately 135,000 customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations.

The Banks’ core idea is to serve customers personally, be local and close, both in traditional and digital channels. OmaSp strives to offer excellent customer experience by offering personal service and being easily accessible. Also the development of the Company’s operations and services occurs on a customer-oriented basis. The Company’s personnel are committed and the Company seeks to support their career development with versatile tasks and continuous development. A substantial part of the personnel also owns shares in the company.

Disclaimer

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States, Canada, New Zealand, Australia, Japan, Hong Kong, Singapore or South Africa. The information contained herein does not constitute an offer of securities for sale in the United States, nor may the securities be offered or sold in the United States absent registration or an exemption from registration as provided in the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder. Oma Savings Bank Plc (the “Company”) does not intend to register any portion of the offering in the United States or to conduct a public offering of securities in the United States.

The issue, exercise and/or sale of securities in the initial public offering are subject to specific legal or regulatory restrictions in certain jurisdictions. The Company, Danske Bank A/S, Finland Branch and Carnegie Investment Bank AB, Finland Branch assume no responsibility in the event there is a violation by any person of such restrictions.

The information contained herein shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale or offer of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Investors must neither accept any offer for, nor acquire, any securities referred to in this release, unless they do so on the basis of the information contained in the prospectus published or offering circular distributed by the Company.

The Company has not authorized any offer to the public of securities in any Member State of the European Economic Area other than Finland. With respect to each Member State of the European Economic Area other than Finland and which has implemented the Prospectus Directive (each, a “Relevant Member State”), no action has been undertaken or will be undertaken to make an offer to the public of securities requiring publication of a prospectus in any Relevant Member State. As a result, the securities may only be offered in Relevant Member States (a) to any legal entity which fulfils the requirements of a qualified investor as defined in the Prospectus Directive; or (b) in any other circumstances falling within Article 3(2) of the Prospectus Directive. For the purposes of this paragraph, the expression an “offer of securities to the public” means the communication in any form and by any means of sufficient information on the terms of the offer and the securities to be offered so as to enable an investor to decide to exercise, purchase or subscribe the securities, as the same may be varied by any measure implementing the Prospectus Directive in that Relevant Member State and the expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU.

This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as “relevant persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

Forward-looking statements

Certain statements in this communication are “forward-looking statements”. Forward-looking statements include statements concerning plans, assumptions, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, the Company’s competitive strengths and weaknesses, plans or goals relating to financial position, future operations and development, its business strategy and the anticipated trends in the industry and the political and legal environment in which it operates and other information that is not historical information, such as net interest income growth, cost savings, investments, the contemplated IPO and listing, future cash flow generation, results, financial position and liquidity. In some instances, they can be identified by the use of forward-looking terminology, including the terms “believes”, “intends”, “may”, “will” or “should” or, in each case, their negative or variations on comparable terminology.

Forward-looking statements in this release are based on various assumptions, many of which in turn are based on assumptions. By their very nature, forward-looking statements involve inherent risks, uncertainties and assumptions, both general and specific, and the risk exists that the predictions, forecasts, projections, plans and other forward-looking statements will not be achieved. Given these risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statements contained herein speak only as at the date of this release. Save as required by law, the Company and the Bookrunners do not intend and do not assume any obligation, to update or correct any forward-looking statement contained herein.