More than EUR 479 mln worth of OEG shares subscribed

Posted on 18.10.2006

According to Mr. Armin Karu, Chairman of the Management Board of OEG, the IPO’s success is a true vote of confidence in the company and in Baltic gaming and entertainment business in general. „In a little more than a decade we have developed an entertainment service whose good quality and modernity is recognized by all colleagues from countries that have much longer casino traditions,” said Mr. Karu.

OEG has stated that its objective for the next 3 to 4 years is to expand to at least five other countries in addition to its current markets of Estonia, Latvia, Lithuania, Ukraine and Belarus. “Our ambitions are notably higher than our current success. This is the main reason why we decided to list our shares,” said Mr. Karu. If Olympic Casino succeeded in realizing its targets, it would become the largest casino operator in the Central and Eastern Europe.

The lead manager of the IPO was Hansabank and the co-manager was GILD Bankers. „This is a historic result – no Baltic companies has until now received subscription orders worth around EUR 479 mln in the course of an IPO,” said Mr. Lauri Lind, head of the equity market department of Hansabank, commenting the results of the IPO. He added that the strong result of the Olympic Casino issue was a good sign also for the future of the whole Baltic securities market.

During the initial public offering of shares of Olympic Entertainment Group that was conducted simultaneously in Estonia, Latvia and Lithuania, the company sold all 14,000,000 ordinary shares and the additional 1,400,000 ordinary shares that were set aside for oversubscription. All in all, institutional investors subscribed 94.26 mln shares, which means that that oversubscription was around 7.5 times. Institutional investors were distributed 12,600,000 shares at EEK 73 (EUR 4,66555) a share.

In the course of the retail offering that was conducted in three Baltic states, 4,566 investors took the opportunity, subscribing 8.5 mln shares. During the retail offering, 20 pct of the basis volume or 2,800,000 shares were distributed at EEK 73 (EUR 4,66555) per share, which means that the oversubscription was around three times. All subscriptions until 725 shares (included) were satisfied in full. Following this division, the subscribed amounts were distributed between 725 and 250,000 shares, which is around 8.1 pct of the subscribed volume. Shares were not allocated to the subscribed amounts that exceeded 250,000 shares.

The number of shares sold in the course of the public offering account for approximately 20.4 pct of the share capital of Olympic Entertainment Group. Depending on the final number of listed shares and the final share price, the total value of the company would exceed EUR 351 mln on the first day of listing. Trading with the shares of Olympic Entertainment Group shares on the Tallinn Stock Exchange is expected to start on October 23rd.

Listing of its shares on the Tallinn Stock Exchange will make Olympic Entertainment Group the first casino enterprise on the Baltic and East European bourses. This will also create better conditions for the company to list its shares on a stock exchange of any other European Union member states in the future.

Olympic Entertainment Group is the leading casino entertainment group in the Baltic states with a total of 74 casinos in Estonia, Latvia, Lithuania, Ukraine and Belarus. The group employs more than 2,000 people. The work procedures of the group’s Baltic subsidiaries are certified according to the international ISO 9001 quality requirements. Olympic Casino is the full member of the European Casino Association.

Additional information:

Armin Karu
Chairman of the Management Board,
Olympic Entertainment Group
Phone + 372 667 1250

Andri Avila
Head of Casino Operations
Olympic Entertainment Group
Phone + 372 667 1250

Lauri Lind
Head of Equity Markets Department
AS Hansapank (lead manager)
Phone +372 6 131 355

Heikki Källu
GILD Bankers (AS LHV Financial Advisory Services, co-manager)
Phone +372 6 800 416

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