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A regional office of the national IPO committee opens in Donetsk

Dec 21, 2006

Donetsk now has a regional office of the national IPO committee, based at ALTERA FINANCE investment group. Previously, the committee was only present in Kyiv. However, the high concentration of large industrial enterprises in the east of Ukraine led to the opening of a regional office here.

The office will facilitate the listing of Ukrainian companies on world’s leading exchanges, such as NYSE, NASDAQ, LSE, AIM, WSE, as well as provide professional services in the IPO market. Apart from that, it will run a consultancy service for companies wishing to place their shares at foreign stock markets. According to ALTERA FINANCE’s foreign investment manager Maxim Shynkarenko, the placement of major Ukrainian companies’ shares on international stock markets will enable those companies not only to attract additional finance for further development, but to get a fair evaluation of their operations as well, Ukrainian businesses being currently undervalued. And it’s only worth some 5-10% of the raised amount, compared to the average Ukrainian interest rate of up to 15%. As international experience shows, major companies trade up to 40% of their shares, keeping the controlling stake to themselves, says Maxim. Mostly, those are industrial enterprises, wholesale traders, telecommunications, financial and insurance companies.

Currently, only 4 Ukrainian companies are listed at foreign markets: 3 at the London Stock Exchange and 1 at the Warsaw Stock Exchange. About 10 other companies declared their intentions to do the same. The key requirement for this is going through a three-year audit and conforming to all European corporate standards.

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