95
ÍÅÄÂÈÆÈÌÎÑÒÜ, ÁÈÇÍÅÑ, ÈÍÂÅÑÒÈÖÈÈ
by
RUSSIAN EMIRATES
isoneof the top threemetallurgyenterprises in
Ukraine, isgoing to issue its first lot of Eurobonds
for $150-250million,with5-years termat roughly
9-9.25%annual interest rate.
ThenumberofUkrainiancompanies interested
in findingdifferentwaysofborrowing foreign
capital for thedevelopmentof theirbusiness is
growingall the time.Oneof suchways is theuse
of sharecapital borrowing schemesbymeansof
initial publicoffering (IPO) of sharesonwestern
markets,whichallowsamajor improvementof
capitalizationofUkraine’scompanies.The first
stepon theway to IPO for anumberofUkrainian
companieswas representedbyprivateofferingof
shares toWestern institutional investors. Companies
likeVATConcernNaftogaz,VATHoldingCompany
AutoKrazandVATDnyproazothavealreadyoffered
their sharesprivately (correspondingly, 10%, 5%
and7%of theauthorizedcapital). Foreign investors
also showed interest to rather successful IPOs
performed in2005onLondon stockExchangeby
the followingcompanies: RetailGroup (managerof
VelykaKyshenya, a supermarketschain inUkraine;
Ukrproduct (manufacturerofdiaryproductsand
powderedmilk. Itborrowed$11millionbymeans
of offering27.2%of theauthorizedcapital via IPO);
and Cardinal Resources (oil andgasdrillingand
production inUkraine). Late in2005, Kyiv-based
companyXXI Centurymanaged to sell via IPOat
theAlternative InvestmentMarket (adivisionof
UKRAINE - UAE
STOCKMARKET
THENUMBEROFUKRAINIAN
COMPANIES INTERESTED IN
FINDINGDIFFERENTWAYSOF
BORROWINGFOREIGNCAPITAL
FORTHEDEVELOPMENTOF
THEIRBUSINESS ISGROWING
ALLTHETIME
