KALVE plans to hold an IPO this year and raise at least EUR 1 million

  • 2024-07-02

To become even more accessible to every coffee drinker, specialty coffee roaster SIA Kalve Coffee (hereinafter – KALVE) plans to perform an initial public offer in the second half of this year, raising at least EUR 1 million to expand its operations further. 

The funds raised from the IPO will be used to open the first six KALVE cafe-stores in Estonia and Lithuania as early as 2025 and to expand beyond the Baltic states in 2026. The funds will also allow for the streamlining and expansion of production processes and the purchase of equipment, diversifying the portfolio of coffee machine suppliers.

"At the heart of any business is the ability to ensure a healthy cash flow, which we have been able to do. Since KALVE was founded, we have shown steady growth, increasing the Company's turnover from EUR 0.35 million to EUR 2.49 million in four years. Pivotal to KALVE is sticking to our values, thinking about the world we will leave for future generations," says Gatis Zēmanis, co-founder and board member of Kalve Coffee.

Overall global demand for coffee is growing rapidly, but compared to the commercial coffee segment, the specialty coffee segment is growing much faster. "This is a very positive trend and also good for the Company, given that KALVE wants to address the lack of availability in the premium coffee market by providing customers with a unique specialty coffee experience. The fact that demand continues to grow is also evidenced by the volume of KALVE coffee sold, with almost 83 tonnes sold last year, an increase of 25% compared with 2022. By ensuring a sustainable, affordable, and transparent business, we are proving that we can make the industry better and be profitable simultaneously," continues Zēmanis.

Last year was the most successful year to date, with turnover of EUR 2.49 million euros in 2023, up 38% compared to the same period last year, and a net profit of EUR 53 thousand euros. 

It is planned that during the initial public offer, the company will issue new shares, which will be offered to investors in Latvia and Estonia. An investor loyalty programme is also planned.

The company is the first in the Baltics to be awarded the B Corp Sustainability Certificate – the gold standard in ESG risk management, and in 2023 the Company received the "Latvian Sustainable Management Award" from the Bank of Latvia.