Why I'm investing in DelfinGroup IPO

Updated: 29 September, 2021 seen 108

DelfinGroup is a Latvian fintech company that offers accessible, simple, and consumer-focused finance and pawn services.

Starting September 28, 2021, there is an ongoing IPO for DelfinGroup on Nasdaq Baltic stock market. IPO will end on October 11. There is a small hype with this IPO in Latvia and seems after IPO will end, it will attract new first time investors to the Baltic stock exchange (Nasdaq Baltics).  Which is great, and hopefully more people will start to explore and invest in other listed companies as well.

This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.

It has been almost 4 years since the last IPO on the Riga stock exchange, back in 2017 Madara Cosmetics launched its IPO, back then I was a bit skeptical about that company, see: Why I'm not investing in Madara Cosmetics (MDRAUC)

As a strong investor in the Baltic region (Dividend-paying stocks and peer to peer lending) investment opportunities in DelfinGroup has been on my radar, probably since the Spring of 2021 when I first heard about upcoming IPO, planned for the Q4 of 2021. 

Once IPO was announced and I familiarized with the prospectus I had strong sentiment investing into DelfinGroup, mainly because:

  1. Nasdaq Baltic is my home market
  2. I'm familiar with the business model DelfinGroup offers, back from the days I actively invested in Mintos peer to peer platform
  3. DelfinGroup seems to be a strong dividend payer in the future

So I placed and order to buy 200 shares at DelfinGroup IPO / Baltic Nasdaq.  As the said IPO price is EUR 1.52 per share. I'm investing here just some shy EUR 300. Play money! And yes, since the last IPO in Riga happened some 4 years ago when Madara Cosmetics went public, they have grown more than fourfold. Fun!

There are a few scenarios I'm looking at now - in case of the significant stock price increase after the IPO (which I doubt) - I will sell off all my shares and take nice profit. In case of a drop in price I will dollar  (euro) cost average more shares and collect dividend while holding the stock.