Dragon Capital Completes Ukraine’s Largest IPO

23.12.2005
The Kyiv-based investment bank Dragon Capital has raised USD 27.5 million for one of Ukraine’s largest retail chains, Velyka Kyshenya, placing a 10% stake in the company.

Kyiv, December 23, 2005 – The Kyiv-based investment bank Dragon Capital has raised USD 27.5 mil. for one of Ukraine’s largest retail chains, Velyka Kyshenya, placing a 10% stake in the company.

The sale of shares in the newly listed open joint stock company Retail Group, which operates Velyka Kyshenya supermarkets, was held on the PFTS, Ukraine’s principal stock trading platform, thus making the transaction the largest Ukrainian IPO to date. The new Velyka Kyshenya shareholders include investment funds run by Julius Baer, DWS and East Capital.

The Velyka Kyshenya offering was more than three times oversubscribed, highlighting Western investors’ growing interest towards Ukrainian assets, particularly retail and consumer sectors. 

Velyka Kyshenya, currently Ukraine’s largest retail chain with 2005E gross sales of USD 270 mil., will use the placement proceeds to continue its regional expansion. The company operates 22 supermarkets and plans to launch another 15 in 2006 and 20 more in 2007. The chain plans an IPO on the London Stock Exchange in 2007.

 

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