LHV Group, which operates the banking service provider LHV UK, has secured €35 million with a recently closed rights issue, which received an overwhelming response and was oversubscribed.
Announced on Tuesday, the funding came when LHV UK, which primarily offers services to fintechs and crypto startups, is in the process of applying for a banking license in the United Kingdom.
“Confidence in LHV's plans and activities is strong as our offering was oversubscribed 1.75 times,” said the CEO of LHV Group, Madis Toomsalu.
“It is gratifying that the Fundraise turned out to be attractive to existing and new investors, despite the subscription period taking place during a tense geopolitical environment and against the background of declining stock markets.”
The group will use a portion of the proceeds of the funding to capitalize on the new UK bank, which according to the group, is a key step in the process of obtaining the banking license.
Restructuring Businesses
LHV Group, which is listed on the Nasdaq Baltic is an Estonian financial group and capital provider. In addition, the group is pushing to separate the business operations of its retail bank, LHV Bank, from those of the London headquartered fintech focussed LHV UK.
A banking license in the UK will simplify LHV UK’s compliance with regulatory and supervisory requirements.
Erki Kilu, the CEO of LHV UK, said: “The funds raised are a key step in the UK banking license application process. In tandem with this ongoing process, we continue to scale up LHV UK’s operations. We’re currently hiring vigorously for our open positions across London, Leeds and Tallinn and continue to develop new client-facing products.”
Earlier in April, the UK company added the Chief Financial Officer of Boku, Keith Butcher, to the Board as the second Independent Non-Executive Director.
