Ukraine takes cautious steps down IPO road
There is a lot of talk in Kiev about companies undertaking IPOs. Every banker and company manager has contemplated the possibilities and many have attended conferences on the subject. Does Kiev need to brace itself for an onslaught of new IPOs as the market opens up or will the local legal infrastructure and stringent international standards stop all the talk in its tracks? Chloe Hayward reports from Kiev.
|IPOs Announced by Ukrainian Companies|
|2007||Finance and Credit||25%||Announced|
|Source: Concorde Capital|
THIS YEAR A number of Ukrainian companies are expected to undertake IPOs in the local and international equity markets. "Two years ago, if you had asked a Ukrainian company if they were going to do an IPO they would have asked ‘Why, what’s the point?’ but now companies are finally realizing the necessity, and the potential gains, of the capital markets," says Andrei Bogdanov, head of Ukraine research at Troika Dialog, an independent Russian investment bank that opened an office in Kiev last year.
Up to now, Ukrainian companies have largely relied on the bank market to fund their expansion but as they become more and more leveraged, IPOs increasingly make sense.