COBALT advised the initial public offering (IPO) of the shares of Estonian state-owned company AS Tallinna Sadam (Port of Tallinn), the first IPO of a state-owned company in almost two decades. Port of Tallinn is the owner of the third largest passenger port in the Baltic Sea Region, the fourth largest passenger port in Northern Europe in terms of passenger traffic and the largest cargo port in Estonia in terms of cargo volumes. Port of Tallinn and its subsidiaries have a diversified portfolio of operations, including passenger harbours, cargo harbours, domestic ferry service connecting Estonia's mainland with its two largest islands, and other services. The IPO, which was oversubscribed by more than a threefold, attracted 102 institutional investors from 22 countries, a record size of total subscriptions from 13,723 Estonian retail investors and generated total gross proceeds of EUR 147.4 million.
CEO of Port of Tallinn Valdo Kalm said in a press release, “The interest of investors, both Estonian retail investors and pension funds, as well as international funds, in Port of Tallinn shares was substantial, and that provides us with a sense of security that we have earned the trust of investors as a stable dividend share.”
Partner Marina Kotkas who led the COBALT’s team commented the deal as follows: “It has been an honour to be part of this true milestone deal for Estonian capital market which has hopefully paved the way for other state-owned companies’ IPOs to come. While advising a process of this magnitude and national importance often has its challenges, all parties involved in the preparation of the deal, and foremost the management team of Tallinna Sadam, have put all possible efforts and shown an extraordinary commitment to successfully close the IPO. We wish Tallinna Sadam a great start as a listed company and the steady growth to become the issuer of the favourite share of Estonian investors.”
Our work during the almost 10-months process comprised of advising the client, in cooperation with the leading international law firm Baker McKenzie, in all aspects related to the IPO, including preparing the prospectus and all IPO-related documentation, decisions of the Estonian Government and the Ministry of Economic Affairs and Communications, and agreements signed with the underwriters organising the offering. Additionally, we conducted the legal due diligence, prepared legal opinions, represented Port of Tallinn in communication with the Estonian Financial Supervision Authority, Nasdaq CSD and Nasdaq Tallinn, etc. COBALT’s team was led by partner Marina Kotkas who was supported by senior associate Mattias Tammeaid and partner Karina Paatsi.
Further information on Port of Tallinn IPO can be found here.