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Citadele Cancels IPO

Latvia’s fifth largest bank, Citadele has decided to hold back on an IPO until a later date. 

The change of plans according to the bank, was down to volatility in the equity markets and the company is now looking at alternative funding methods.

It is said that there is interest from institutions and private investors, but the original plan of floating shares on the Riga and London stock exchanges has been scrapped.

The chairman of the board stated, “We have found strategic importance for alternative financing possibilities. Our business is stable and profitable, and we firmly believe that the decision taken at this point is the correct one. Citadele’s focus will not change, we will continue its development, offering customers great service and quality.”

Citadele was formed in 2010 from the troubled Parex Banka. Currently 75% owned by Ripplewood Advisors, the bank was attempting to raise €115 million in the IPO.

The bank has 34 branches in Latvia with 273,000 customers. 14,700 of their customers are small and medium sized businesses.

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