Success fulfills first bond offering, surpassing goal by 30%

Success fulfills first bond offering, surpassing goal by 30%

Largest Vision Care Titan in the Baltics Secures EUR 10 Million Through First Public Bond Offering

OC VISION, the top dog in the vision care sector across the Baltics, raked in a cool EUR 10 million through its debut bond offering. With a fixed annual coupon rate of 6%, demand for these secured bonds surged, totaling a whopping EUR 13.1 million — 130% over the emission target.

Investor interest came pouring in from all corners, namely Latvia, Lithuania, Estonia, and Germany. Institutional investors found the healthcare sector's stable and sustainable outlook appealing, represented by OC VISION's dominant market presence.

A staggering 95% of investor demand originated from Latvia, with the rest hailing from Lithuania, Estonia, and Germany. This notable figure underscores the burgeoning retail investor community in Latvia and the rising financial literacy among its populace, incentivizing more individuals to invest in bonds.

Gatis Kokins, Board Member and co-owner of OC VISION, shares his thoughts: "We're thrilled with the successful completion of our inaugural bond issue and are humbled by the faith bestowed upon us by investors. We heartily thank every investor for backing OC VISION's future growth. Our growth strategy revolves around expanding our store network, acquiring strategic businesses, and modernizing vision care technologies across the Baltics. The funds raised will not only refinance existing debts, but also guarantee clients' access to premium vision and hearing care services and cutting-edge technologies throughout the region."

Edmunds Antufjevs, Head of Investment Banking at Signet Bank AS, chimes in: "The exceptional investor interest in this offering — particularly in the current bustling bond issuance environment in the Baltic capital markets — underscores both the allure of the healthcare sector and investor confidence in OC VISION as a regional powerhouse. We were delighted to facilitate OC VISION's capital markets entrance and provide investors with an enticing investment opportunity in a robust and socially significant sector."

With the offering oversubscribed, the issuer opted to allocate the full amount to retail investors, while the remainder was distributed among institutional investors.

Retail investors' interest was fueled by more than just market conditions and the sector's long-term potential. The Investor Loyalty Program was a significant attraction, with individuals subscribing EUR 500 and above able to participate. registration for the program will be accessible via https://ocvision.eu/en/investors/ starting 1 July 2025 and will remain open for three months, until 30 September 2025 at 23:59.

On the heels of the issuance, OC VISION will submit an application to list the bonds on Nasdaq Riga's First North market, with the first trading day on Nasdaq Baltic First North slated for 30 June 2025.

Settlement of the bonds is scheduled for 20 June 2025. Bondholders will receive quarterly coupon payouts, with the first payment set for 20 September 2025.

The bond offering was organized by Signet Bank AS, a prominent Latvian investment bank. Legal advisory services were provided by TGS Baltic, and the collateral agent was Sorainen ZAB.

OC VISION: The Behemoth in the Optical Market

Founded in 1991, OC VISION has boldly asserted itself as a significant player in the optical care industry. Starting with its initial store, the company organically expanded across Latvia (since 1991) and Lithuania (since 2001), also growing its online channels. Today, the group boasts over 570 professionals and operates more than 77 branded stores throughout Latvia and Lithuania, catering to over half a million customers annually.

Notable achievements in 2024 include performing over 110,000 eye exams, fulfilling over 540,000 client orders, and producing approximately 105,000 prescription glasses, showcasing strong operational scale. The company's revenue grew by 10% year-on-year, hitting a record €36 million, with EBITDA increasing by 38% to €2.2 million, underlining robust financial performance.

Long-term shareholders, including co-founders Jānis Dzenis (32%), Pēteris Cikmačs (28%), Gatis Kokins (20%), and Toms Dzenis (20%), provide OC VISION with a strong foundation for continued growth in the vision and hearing care sectors across the Baltics and beyond.

1. The success of OC VISION's bond issue indicates investor confidence in the healthcare industry, specifically in the environmentally and socially significant sector of vision care.
2. The booming retail investor community in Latvia, demonstrated by the high demand for OC VISION bonds, signals a growing interest in various business sectors, including health, finance, and investing.
3. With the funds raised from the bond issue, OC VISION plans to expand its business in the vision care industry, modernize technologies, and acquire strategic businesses, all while ensuring client access to premium services and technologies across the Baltics.

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