Baltic Entertainment Group Apollo to Seek IPO After Bond Issue

Tallinn, Estonia – Apollo Group, a leading entertainment and hospitality company in the Baltic region, is preparing to list bonds on the Nasdaq Tallinn regulated market, marking a significant step towards strengthening its financial position and funding ambitious expansion plans. The move follows a successful bond issuance and aims to provide the company with resources for growth and increased operational efficiency.

Apollo Group is widely recognized in Latvia, Estonia and Lithuania through its diverse portfolio of brands, including the Lido restaurant chain, Apollo cinemas, Vapiano restaurants, MySushi, and the KFC fast-food franchise. The company currently boasts a loyal customer base of over one million individuals across the Baltics.

The bond issuance is intended to bolster Apollo Group’s financial independence and optimize its capital structure. Proceeds will be directed towards investments designed to enhance operational effectiveness, ultimately increasing profitability and solidifying its position as a market leader in the Baltic entertainment and hospitality sectors.

In the 2024/25 financial year, Apollo Group reported consolidated revenue of €227 million, a 6% or €14 million increase compared to the previous period. The Group’s EBITDA (earnings before interest, taxes, depreciation, and amortization) also saw a substantial rise, increasing by 12% to reach €40 million.

“Our past performance demonstrates our sustainability and efficiency – our cinema network, bookstores, and restaurants are all profitable,” stated Toomas Tiivel, CEO of Apollo Group. “This provides a solid foundation for ambitious future growth. Over the next five years, we plan to significantly increase both our revenue and the number of locations across all our home markets, expanding the network from 170 to approximately 300 sites.”

The planned bond issuance is designed to finance this expansion. Apollo Group has significant plans to scale its operations in Latvia, Finland, and Lithuania. In the Finnish market, the company intends to introduce new brands, complementing its existing Vapiano and KFC offerings.

Silver Kalmuss, Head of the Bond Department at LHV Bank, noted that both private and institutional investors have been anticipating the entry of new Baltic market leaders from previously unrepresented sectors into the capital market. “Apollo Group is one of the strongest brands and largest companies in the Baltics. In the context of capital market development, the Group’s plans to list bonds on the Nasdaq Tallinn regulated market – the Baltic Bond List – are particularly significant, allowing investors to trade them in the secondary market,” Kalmuss added.

Kristiāna Janvare, Head of Investment Banking at Signet Bank, highlighted the potential appeal of the bond offering to Latvian private investors. “We see that this bond offering could be of interest to many Latvian private investors. Apollo Group stands out with an impressive number of loyal customers in the Baltics, and many Latvian investors may be surprised to learn that a company from Estonia stands behind such beloved brands as Lido and Apollo Kino.”

To initiate bond trading on the Nasdaq Tallinn regulated market – the Baltic Bond List – Apollo Group intends to submit a corresponding application. A prerequisite for the public offering of bonds is the approval of the base prospectus by the Estonian Financial Supervision Authority. The company will announce the approval of the base prospectus and the start of bond subscription, including the final terms, separately.

The move by Apollo Group reflects a broader trend of Baltic companies seeking to access capital markets to fund growth initiatives. The listing on the Nasdaq Tallinn regulated market will provide increased liquidity for the bonds and broaden the investor base, potentially attracting both regional and international interest. The company’s strong financial performance and established brand recognition are expected to make the bond offering attractive to investors seeking exposure to the growing Baltic economy.

While the specific terms of the bond issuance, including the interest rate and maturity date, have not yet been disclosed, the company’s stated intention to use the proceeds for expansion suggests a focus on long-term growth and market leadership. The successful completion of the bond offering will be a key milestone for Apollo Group as it seeks to capitalize on the increasing demand for entertainment and hospitality services in the Baltic region.