Institutional investors could submit their auction sheets for AutoWallis shares at OTP Bank, proceeding as lead-manager, at the price range of HUF 107-122 specified in advance, based on the public offering prospectus approved by the National Bank of Hungary. The retail subscription, originally planned for 16 days, was closed at 12:01 am on October 28, 2021, after the end of the third day, as retail investors submitted applications totaling more than HUF 2.8 billion at the maximum issue price of HUF 122/share, thereby exceeding the HUF 1.5 billion originally allocated for retail sales. AutoWallis plans to raise HUF 6-8 billion in capital from retail and institutional investors. According to the company’s plans, retail sales amount to HUF 1-1.5 billion and institutional sales will be between HUF 5 and 6.5 billion (in case of oversubscription, the final issue value may be up to 25% more). It is important to note that from the shares meant for institutional sale, the prospectus provides a possibility for AutoWallis to regroup shares in a total value of HUF 500 million for retail sale, as well as to further increase by an additional 25% the total offer value (HUF 2 billion) raised by regrouping, as the maximum offer value pertaining to retail sales (to HUF 2.5 billion) and to accept oversubscription for the increased offer value. AutoWallis will take a joint decision on doing so together in agreement with the lead-manager within 2 workdays after the end of the subscription period involving the institutional investors, in line with the conditions of the official stock exchange listing. The Company hopes that several hundred new investors will join its investors with the purpose of supporting its growth strategy and supporting the listed automotive company in its success story, accompanying it along the path that will allow the AutoWallis Group to become a major vehicle trading company and mobility service provider in the Central and Eastern European region by the end of the decade.

In case of oversubscription, the Company plans to sell a maximum of 93,457,943 new shares in the course of the sale of shares to retail and institutional investors. Retail investors can purchase AutoWallis shares at the final price that develops in the course of the institutional book-building auction, within the HUF 107-122 price range. Retail investors could make subscription offers for AutoWallis’s newly issued shares at a maximum price of HUF 122 within the HUF 107-122 price range, with the condition that if the final price is determined to be less than the maximum price, the difference will naturally be returned to them. The final share issue price will be determined jointly by the issuer and the lead-manager within the price band after the book-building has been closed. Detailed information on the public offering is available on the www.otpbank.hu/autowallis website.

History of AutoWallis’s public offering

AutoWallis’s public offering was launched on October 25: it is the first on the regulated Budapest Stock Exchange (BÉT) market since 2017 and is an important step on the Hungarian capital market not only because of the above but also due to its planned amount. The growth strategy presented by the AutoWallis Group is the reason for the capital increase and includes transactions, acquisitions, and developments of HUF 16-38 billion by 2025. The company’s dynamic growth is bolstered by the positive processes and successful transactions of recent years, as a result of which AutoWallis may double the revenue of HUF 88 billion achieved in 2020 by the end of the current year; thanks to continued organic growth and 1-2 transactions per year, the 2020 figures may increase more than four-fold, to more than HUF 400 billion, by the middle of the decade. The growth may also become apparent in the company’s profitability: they plan to increase their EBITDA by more than six times, to HUF 14-15.2 billion, by 2025.

AutoWallis is present in 14 countries in the Central and Eastern European region with its vehicle trading and mobility service activities, and in the coming years it plans to achieve growth in three main areas: it intends to broaden its services portfolio, expand geographically its existing Retail and Services Business Unit, and continue to strengthen its Distribution Business Unit. This latter includes bolstering its role as regional consolidator and including additional international vehicle brands in the AutoWallis Group to complement the present offering of five brands. In addition to the organic expansion of the current Retail & Services Business Unit (the Group currently represents and sells 16 vehicle brands, and represents Sixt rent-a-car), the Group primarily plans on purchasing independent retail locations and repair centers that deal with more than one brand and are definitive on the market thanks to their strategic location, in addition to also creating a presence in new countries. To achieve these goals, AutoWallis is planning on property investments that support its business activities by taking into account the principles of sustainability and the Green Finance Framework. As regards services, among others AutoWallis plans to launch a regional fleet management service, implement business development based on existing synergies (used cars, financing, insurance mediation, joint procurement), develop digital sales channels and data analysis capabilities, and develop service activities and short-term vehicle rentals.

Disclaimer

This publication is qualified as advertising according to the EU Regulation No. 1129/2017. The purpose of this publication is to ensure that all investors have access to the same regulated information and thus the Company provides total transparency and fully comply with the regulations of EU Regulation No. 1129/2017 and Act No. CXX of 2001 on the Capital Market (Tpt.). Related to the information contained in this publication the Company has published a prospectus prepared pursuant to EU Regulation No. 1129/2017 and approved by the NBH. The prospectus is publicly available on the website of the Budapest Stock Exchange (https://www.bet.hu/newkibdata/128621182/AutoWallis_Osszevont%20Tajekoztato_jovahagyott_alairt.pdf), on the website of the NBH (https://kozzetetelek.mnb.hu/downloadkozzetetel?id=661680&did=K461665/2021), on the website of the Company (https://www.autowallis.hu/hu/reszvenyjegyzes), and on the website of the distributor (https://www.otpbank.hu/portal/hu/AutoWallis_Reszvenyjegyzes).

The approval of the prospectus by the NBH does not mean the approval of the securities to be offered or the offering of those on the regulated market. In order to fully understand the potential risks and benefits of the relevant investment decision it is expedient for the investors to read the prospectus after its publication, prior to making an investment decision regarding the public offering of the shares, and prior to making an investment decision, it is worth to carefully consider the legal, taxation or pay-off consequences of a possible investment in the Company and its securities, including the benefits of the investment and the relevant risks. The Company draws the attention to the fact that the Company and its representatives assume no responsibility for investment decisions based on the conclusions drawn by investors, for its detrimental legal consequences or financial losses.

‍