Real estate development company Hepsor, which operates in the Estonian and Latvian markets, has begun preparations for the initial public offering (IPO) of the company’s shares and their listing on the main list of the Nasdaq Tallinn Stock Exchange.
The exact time of the initial public offering of shares will be announced after the completion of the preparatory work.
The public offering will give investors the opportunity to invest in one of the fastest growing real estate development companies in the Baltics. The obtained funds will be used to finance real estate development projects in the planning stage.
Currently, the company’s portfolio includes 20 new development projects with a total area of 140,000 m2. The timing of the public offering of shares may be affected by developments in the global economy and their reflection in the stock markets.
In 2020, Hepsor became one of the top 10 real estate developers of the real estate consulting company Colliers. In Estonia, on the other hand, the company has been consistently among the four largest housing developers for the last four years (from 2017 to 2020). Last year, it took second place in the market with 277 new apartments sold.
“The company’s stable position will help it to develop further. In the context of the local market, our development portfolio is very strong, so we are confident that we will continue to grow rapidly. Even for those who have not previously invested in real estate, the acquisition of Hepsor shares is a good opportunity to participate in the rapid development of the Estonian and Latvian real estate industry. Given that the company is growth-oriented, there are no plans to pay dividends in the coming years, ”says Henry Laks, Member of the Board of Hepsor.
In 2020, the sales revenue of the Hepsor Group company in Latvia reached 4.9 million euros, accounting for almost 13% of the Group’s total sales revenue. Last year, compared to 2019, the Hepsor Group’s total turnover increased by 98%, reaching 38.8 million euros. The company’s net profit, on the other hand, increased by 115% during the period, reaching 2.9 million euros.
One of the largest and most well-known development projects of the company in Latvia is the multi-functional class A business complex “Krasta City”, which is planned to be implemented in the next ten years. In Tallinn, it is the Factory Quarter (Manufaktuuri Põhja), which will consist of two new apartment buildings with 154 apartments and a reconstructed Baltic Manufactory factory building with 400 apartments and 6,000 m2 of leasable commercial space.
The founders and owners of the Hepsor Group are Andres Pärloja (33.25%), Kristjan Mitt (33.25%), Henri Laks (16.6%) and financial investor Lauri Meidls (Lauri Meidla) (16.9%).
The company was founded in Estonia in 2011, where several real estate projects in the residential and commercial segment have been implemented so far. Hepsor started operating in Latvia at the end of 2017.
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