Announcement of the final Offer price

AB Ignitis Grupė, (hereinafter – Ignitis Grupė or „the Company”) identification code 301844044, registered office placed at Žvejų str. 14, Vilnius, Republic of Lithuania. The total nominal value of issued bonds 900 000 000 EUR; ISIN codes XS1646530565; XS1853999313; XS2177349912.

“Ignitis grupė”, a leading utility and renewable energy company in the Baltic region, following its announcement on 21 September 2020 regarding the offer price range and the publication of the Prospectus, today announces the successful pricing of its initial public offering (the “IPO” or the “Offering”) of Ignitis grupė ordinary shares (the “Shares”) and global depository receipts representing the Shares (the “GDRs”, and together with the Shares, the “Offer Securities”). One GDR represents an interest in one Share.

Offer Highlights

• The Offer Price has been set at €22.50 per Share and €22.50 per GDR.
• Based on the Offer Price, the market capitalisation of the Company will be approximately €1,671.4 million at the commencement of conditional dealings on the Nasdaq Vilnius Stock Exchange and the Offer will raise gross proceeds of €450 million.
• The Offer is solely comprised of new shares issued.
• The Offer comprises 20,000,000 Shares and consists of two tranches: 1) a tranche of securities in the form of Shares and GDRs offered to institutional investors and 2) a tranche of securities in the form of Shares offered to retail investors who are residents of Lithuania, Latvia and Estonia.
• Institutional investors were allocated 18,130,699 Shares in the form of Shares and GDRs. The institutional tranche attracted strong and well-diversified global demand, in particular from both international and local asset managers. UK-based institutional investors account for approximately one third of the overall demand. The IPO saw strong participation from Baltic institutional investors led by local pension funds. The remaining demand came from a balanced mix of Nordic, Continental European and other global institutional investors.
• Retail investors subscribed for 1,869,301 Shares in the Offering. The Company highly values the strong backing by retail investors and decided to allocate all of them 100% of subscribed Shares. They comprise 9.3% of the total Offer. 6,827 retail investors participated in the IPO of which 4,691 were from Lithuania, 1,836 from Estonia and 300 from Latvia.
• In connection with the Offering, the Group has appointed Swedbank AB (in cooperation with Kepler Cheuvreux S.A.) ("Swedbank") as stabilisation manager in respect of the Offer Securities (the “Stabilisation Manager”). The Stabilisation Manager has the right to acquire up to 10% of the total number of shares and GDRs offered in order to stabilise the price of the Offer Securities at a level higher than that which may otherwise prevail if stabilisation actions were not taken.
• Immediately following Admission, the Offer Securities will represent 26.9 percent of the Company's issued share capital. The Republic of Lithuania, through the Ministry of Finance, will remain the Company’s controlling shareholder (the “Principal Shareholder”) with a shareholding of 73.1 percent of the Company’s issued share capital upon Admission. Should stabilisation trades take place and the Company buy back shares from the Stabilisation Manager, the stake of the Principal Shareholder may increase to up to approximately 75 percent.

Darius Maikštėnas, CEO and Chairman of the Management Board said:

“We are pleased with the strong interest in our offer with our books strongly oversubscribed. We would like to thank investors for supporting Ignitis Group at such an important time. We are proud that our resilient growth strategy has been recognised by high quality investors. The Group looks forward to leading the Baltic energy sector’s transition to renewables whilst generating long-term value for shareholders.”

Darius Daubaras, Chairman of Ignitis Group Supervisory Board said:

“We would like to welcome our international and regional  investors, and thank them for their interest and trust in Ignitis Group at this important moment in our history.  As a business, Ignitis Group has come a long way. We were founded with the aim of modernising Lithuania’s energy sector. Today, we are the leading utility and renewable energy company in Lithuania and the Baltics, and are set to lead the energy transition in the region. I am confident that with our proven track record, experienced management team and strong strategy we will deliver steady and reliable returns for our investors, while contributing to a greener and cleaner future.”

Vilius Šapoka, Minister of Finance of the Republic of Lithuania said:

“Ignitis Group's IPO is an ice breaker in the Lithuanian capital market – becoming the largest transaction in the Baltics in the last couple of decades. I trust that this ice will not form again soon, because Lithuanian, Latvian, Estonian retail investors, pension funds and institutional investors have received a lot of attention during this IPO. Meeting all the demand from local investors suggests that the activity in stock trading in local markets will rise significantly. Investors have also shown confidence in the goals of the Ignitis Group and the National Energy Independence Strategy – the IPO proceeds will help to implement these goals, promote green energy and ensure energy security.”

Admission and Dealings

Further Information

• The Principal Shareholder, as well as members of the Company's Management Board participating in the Offering, will each be subject to a lock-up of 180 days, subject to certain customary exceptions.
• The Company intends to use the net proceeds raised from the Offer to facilitate the Company's growth, including but not limited to investments in the Networks segment (e.g., cabling, smart meters, digitisation, etc.) and the Green Generation segment, and for general corporate purposes.

Underwriters

The Company has engaged J.P. Morgan Securities plc ("J.P.Morgan"), Morgan Stanley & Co. International plc ("Morgan Stanley"), Swedbank AB (in cooperation with Kepler Cheuvreux S.A.) ("Swedbank") and UBS Europe SE ("UBS”) to act as Joint Global Co-ordinators and Joint Bookrunners and BofA Securities Europe SA ("BofA Securities") to act as Joint Bookrunner.

For more information please see the attached Pricing statement.