Enefit Green's IPO was oversubscribed four times

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Enefit Green's IPO was oversubscribed four times

A total of 60,335 retail investors participated in the initial public offering (IPO) of the shares of the renewable energy company Enefit Green, exceeding the previous record multi-fold and establishing Enefit Green as a truly public company.

Total volume of subscriptions was four times more than the base offering. To meet very high retail demand, the size of the IPO was increased from 115 million to 175 million euros.

During subscription period, the price range of the share was 2.45 to 3.15 euros, but after careful consideration of the allocation, the final price was established at 2.90 euros, which is in the top half of the price range The price is equal for all investors.

55% of the Offer Shares were allocated to retail investors and the remaining 45% to institutional investors. All retail investors were allocated 100% of their subscribed amount up to 1,000 shares and 5.5% of the requested subscriptions exceeding that level. The supervisory board and management board members and employees of Eesti Energia and its group companies in Estonia, Latvia and Lithuania were allocated 100% of their subscribed amount of up to 2,000 shares and 5.5% of requested subscriptions exceeding that level. There were subscriptions from more than 60,000 retail investors of whom more than 80% received their requested subscription amount in full.

The shares allotted to investors are expected to reach their securities accounts on October 20. Enefit Green's first trading day on the Nasdaq Tallinn Main List is expected to be on October 21.

Hando Sutter, Chairman of the Supervisory Board of Enefit Green, said that the record interest and aspiration of retail investors to be involved in the green transition showed confidence in Enefit Green's team and plan. “The successful completion of the transaction and the great interest of investors encourages the Enefit Green team to continue to think big. The commitment of the employees of Enefit Green and the entire group of Eesti Energia is also shown by 900 of our own employees subscribing for the shares, meaning that almost every fourth employee participated in the offering,” Sutter acknowledged.

According to Aavo Kärmas, Chairman of the Management Board of Enefit Green, more than 60,000 unique investors expressed an extremely strong mandate to implement the company's growth plan. “In many ways, Enefit Green has been a pioneer in the field of renewable energy for almost 20 years. The company has grown into one of the leading and most versatile producers of green energy in the Baltic Sea region. Our dedicated team will implement the company's growth strategy with the help of the money raised during the share offering and increase our renewable energy production capacity 2.3-fold by 2025 as compared to today.”

Mihkel Torim, Head of Swedbank’s Baltic and Finnish Investment Banking, and one of the organizers of the offering, is very satisfied with the result and notes that it is a significant and historic transaction on the Baltic stock exchange: “Interest in Enefit Green's IPO turned out to be exceptionally high and clearly exceeded expectations. With over 60,000 subscribers, Enefit Green is the IPO in the Baltics with the largest number of subscribers ever. The significant retail interest in the offering shows the development of the local community of investors in recent years and the clear wish of them to be part of the growth story of the local future-oriented company that Enefit Green is excellently providing. There was also high interest among institutional investors with Baltic pension funds as well as regional and international investment funds, including EBRD, participating in the offering.”

The offering is organized by Swedbank, Nordea and Citigroup. The main organizer of the retail offering is Swedbank and the sales agent is LHV Pank. Enefit Green's legal advisors are Cleary Gottlieb Steen Hamilton and Ellex Raidla, the banks' legal advisors are Shearman & Sterling and Sorainen, and the communications advisor for the whole project is Agenda PR.

Enefit Green is a renewable energy company that belongs to the group of Eesti Energia and owns a total of 22 wind farms in four markets – Estonia, Latvia, Lithuania, and Poland – as well as 38 solar power plants, 4 CHP plants, a pellet plant and a hydroelectric power plant. The company produced a total of 1.35 terawatt-hours (TWh) of electricity in 2020. Enefit Green's revenue in 2020 amounted to EUR 162.7 million and its EBITDA was EUR 110.2 million.

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This notice is an advertisement and is a prospectus not within the meaning of the Regulation (EU) 2017/1129. Before making an investment decision on the securities referred to in this notice, investors should read the prospectus in order to fully understand the risks and rewards of investing and, if necessary, consult an expert. The issuer's shares are publicly offered only in Estonia, Latvia and Lithuania. The prospectus is available on the Issuer's and FI's websites www.enefitgreen.ee/ipo and fwww.fi.ee respectively. Approval of the prospectus by FI shall not be considered as approval of securities.

This communication and the information contained in it are not intended for distribution in or to the United States of America (including its territories and jurisdictions, the United States, and the District of Columbia) ("United States"). This announcement does not constitute an offer or its part or an invitation to purchase or subscribe for securities in the United States. The Issuer's securities are not registered and will not be registered under the US Securities Act of 1933, as amended (in English: U.S. Securities Act of 1933, hereinafter referred to as the "Securities Act"), and may not be offered or sold in the United States unless the securities are registered under the Securities Act or, if it is possible to apply the exemption from the registration requirements of the Securities Act. The Issuer has not registered and does not intend to register any part of the offer in the United States and does not intend to conduct a public offering of securities in the United States. If Shares are sold in the United States, they will only be sold to qualified institutional buyers (as defined in Rule 144A) pursuant to Rule 144A of the Securities Act.