COBALT represented East West Agro (EWA), one of the largest agricultural machinery sales company in Lithuania, in the initial public offering of the company’s shares. This is the first IPO in Lithuania after a long time.
The company’s shares have been acquired by 107 investors. The company raised EUR 3 million, and the demand exceeded the supply by 22 per cent.
According to the CEO of EWA Gediminas Kvietkauskas, the company is aiming to become a listed company having liquid shares that would be attractive to investors. “We have successfully taken a very important step towards this objective by offering 125,000 new shares. We are pleased that investors consider our company, its business model and growth plan to be attractive and that they believe in the growth potential of Lithuania’ agricultural sector,” said Mr Kvietkauskas.
The major part of the raised capital will be earmarked for the development in Lithuania – in 2017-2018, new technical maintenance and sales units are planned to be established in the main regions of Lithuania.
EWA has started its preparations for getting its shares listed on the Nasdaq First North, a Nordic-Baltic alternative stock exchange for trading in shares. It is planned that the shares will have been listed on the First North by 22 May this year.
COBALT lawyers have represented East West Agro (EWA) in the company’s preparations for the IPO (by merging UAB EWA Group with East West Agro and converting the form of East West Agro from private limited liability company to public limited liability company). COBALT lawyers also prepared the reference document and other related documents and have advised EWA throughout the entire process of the IPO.
COBALT continues consultations on the listing of EWA shares on the alternative stock exchange First North. The team of COBALT lawyers has been led by the Head of the Banking and Finance Practice Group Akvilė Bosaitė, with assistance from Senior Associate Justina Milašauskienė and Associate Evaldas Petraitis.
Established in 2006, EWA has been a representative of such producers of agricultural machinery as Massey Ferguson, Laverda, Fella and others. The Company’s income for 2016 accounted for EUR 23 million, almost double the amount of 2015.