Heder Bank intends to list on the Oslo Stock Exchange or Euronext Expand before the end of the year, aiming to raise between 300 and 400 million NOK in new capital.
The company announced the plan Monday morning.
The bank has set a subscription price of 35 NOK per share, contingent on a planned share consolidation. This valuation places the bank at 371 million NOK prior to the capital raise.
The path to the stock market follows a challenging period for the institution. In April, the bank completed a 220 million NOK share issue at a significantly reduced valuation following substantial losses.
Several of the bank’s largest stakeholders have already committed to the new offering.
EGD Capital, holding 18.9 percent, Camar Invest 3 with 5.5 percent, Varner Invest with 5.4 percent, and Telenor Pensjonskasse with 4.3 percent have pledged to subscribe for approximately 165 million NOK.
Founders Klaus-Anders Nysteen and Gustav Gotteberg are also participating, committing 9 million NOK and 7 million NOK respectively. ABG Sundal Collier and Pareto Securities are serving as managers for the listing.
Heder Bank reported rapid expansion in its lending business throughout the autumn. Total loans reached 2,54 milliarder NOK at the end of September and surpassed 4 milliarder NOK during October.
“Our mortgage portfolio doubled in the third quarter, and the strong growth has continued into the fourth quarter,” said CEO Anette Willumsen. She stated that the bank aims to increase lending to approximately 50 milliarder NOK by 2030, with a target return on equity after tax of about 15 percent.
Willumsen argues that many customers with stable finances do not receive competitive interest rates from traditional banks on either mortgages or deposits. “We want to change that, and the new capital will enable us to give far more customers with order in their private finances good customer experiences and fair interest rates,” she said.
- Target date: Before the end of the year.
- Listing venue: Oslo Stock Exchange or Euronext Expand.
- Capital goal: 300 to 400 million NOK.
- Share price: 35 NOK per share (post-consolidation).
Who are some of the notable individual investors involved in the bank?
Previous investors in the bank include Aksel Lund Svindal, Magnus Halvorsen, Morten Angelil, and Edvin Austbø.
What is the bank’s long-term lending goal?
The bank aims to grow its loan portfolio to approximately 50 milliarder NOK by 2030.
Why is the bank raising new capital now?
Management states the capital is intended to allow the bank to offer more competitive mortgage and deposit rates to customers with strong personal finances.