LAU Infra Grupa AS Initial Public Offering – A Significant Step for Latvian Capital Market Development

Supervisory News

LAU Infra Grupa AS today announced the results of its initial public offering (IPO), as the subscription period for the company's shares concluded on June 19. On June 4, the Bank of Latvia approved the prospectus for LAU Infra Grupa AS for the IPO and the inclusion of its shares in the Official List of AS "Nasdaq Riga," as well as for trading therein.

Santa Purgaile Deputy Governor of the Bank of Latvia

"The IPO of LAU Infra Grupa AS is a significant event not only for the company itself but also for the Latvian capital market as a whole. It is the first IPO of a state-owned company in Latvian history, and its significance extends beyond the specific financial indicators of the company. For Latvian citizens, it is an opportunity to become shareholders of a strategically important state-owned company and participate in its further development; for the company, it is an opportunity to attract development financing and improve governance and competitiveness; and for the state, it is an opportunity to develop a more diverse financial market and broader investment opportunities in Latvia."

LAU Infra Grupa AS is one of the largest and most strategically important infrastructure construction and road maintenance companies in Latvia. The company ensures the maintenance of state and several municipal road networks, implements defense infrastructure projects, and operates in the production of mineral materials. Infrastructure is one of the pillars of state development – it is essential for mobility, regional development, economic growth, and state security.

Until now, the sole shareholder of LAU Infra Grupa AS was the Republic of Latvia, acting through the Ministry of Transport. According to the decision adopted by the Cabinet of Ministers of the Republic of Latvia on October 7, 2025, the IPO is structured so that the Republic of Latvia retains state ownership of at least 75.01% of the share capital of LAU Infra Grupa AS.

In recent years, the company has shown stable development. According to audited data, the company's turnover reached 97.1 million euros in 2025, while profit increased by 6.5%, reaching 7.4 million euros. The company has indicated a goal to strengthen its position in the infrastructure and road maintenance sector, increase profitability, and more fully reflect the company's market value.

"A broader range of companies important to the state listed on the stock exchange means more opportunities for citizens to become co-owners of these companies, build long-term savings, and directly participate in the development of the Latvian economy. A strong and developed capital market promotes greater public involvement in the economy and creates opportunities for Latvian citizens to participate in the development of companies important to our state. These are gradual changes where the state, companies, and investors are learning new cooperation models, from which everyone can benefit," emphasizes S. Purgaile.

The participation of state and municipal companies in the capital market is one of the steps in the Bank of Latvia's 10-step program for capital market development. In Lithuania and Estonia, slightly more than a third of market capitalization is composed of companies controlled by the state and municipalities. Until now, there were three listed state and municipal companies in Latvia – AS "Latvenergo", AS "Augstsprieguma tīkls", and SIA "Rīgas ūdens" – whose bonds are included in the regulated market. To achieve the market capitalization target previously set by the Latvian government, it is necessary to promote the entry of large state-owned companies into the capital market, particularly by listing their shares.