Demand for Neodenta bonds exceeded supply by 52%
The implantology and aesthetic dentistry clinic network Neodenta issued a €3 million real estate-backed bond offering with an annual interest rate of 10%.
The bonds have a 3-year term and will be listed on the First North (Nasdaq Vilnius) bond market no later than three months from now.
In addition to Lithuanian investors, investors from Estonia and Latvia actively participated in the offering. The demand for the issuance exceeded supply by €1.57 million, or 52%. The allocation was filled on December 10, two days before the offering’s end. According to the time priority principle, all applications submitted by this date will be fulfilled in full, while applications submitted on December 11–12 will not receive any bond allocation.
Neodenta began its operations in 2000, opening its first clinic in Kaunas. Today, the company operates in 29 dental offices in Vilnius, Kaunas, and Vilkaviškis. It employs 182 highly qualified specialists who provide high-quality, top-level services under one roof. Furthermore, Neodenta is the founder of the national aesthetic dentistry association and a pioneer in aesthetic dentistry.
“Our patient base is constantly growing, and the demand for modern orthodontic services is increasing. The bond issuance allows us to efficiently implement our expansion plans—to open 6 new clinics over the next 3 years,” commented Eglė Kunčiuvienė.
According to E. Kunčiuvienė, the company has been profitable throughout its existence since the establishment of its first clinic in 2000. The expansion of services and new clinics is being carried out in a measured way to ensure top-level services and access to the latest technologies. The redemption of the issued bonds will be financed from profits generated by executing the planned growth strategy.
“For investors looking for diversification opportunities, these bonds were attractive due to the medical sector in which Neodenta operates, the company’s strong financial results, and the clear security provided by pledging real estate,” said Mykantas Urba, Head of Corporate Finance at Orion Securities.
The bond offering and distribution were organized and conducted by Orion Securities.
