News
25.04.2008
Ukraine Poultry Firm MHP Sets Price Range For IPO
Ukraine's leading poultry producer, Mironovskiy Hleboproduct (MHP), said on Friday it had set the price range for its initial share offering at $14.0-$18.5 per global depositary receipt.
The firm said in a statement the range implied a market capitalisation of approximately $1.40-$1.85 billion. The offering consists of 10,750,000 new ordinary shares and at least an equal number of existing shares to be offered by the selling shareholder WTI. In addition, an over-allotment option of up to 15 percent of the total offering size has been granted by the selling shareholder to UBS (UBSN.VX: Quote, Profile, Research) acting as a stabilising manager. "We believe that the IPO offers investors the chance to benefit from the growing demand in Ukraine for meat related products, especially poultry, and the increase in consumer spending power," Yuriy Kosyuk, MHP's chief executive officer, said in a statement. The firm, which also produces grain, said earlier this month it had picked Morgan Stanley (MS.N: Quote, Profile, Research) and UBS to act as joint global coordinators and joint bookrunners for the global share offering. The firm said it intended to use the IPO proceeds to finance the expansion of its poultry business, further the expansion of its grain production facilities, enlarge its land portfolio and explore potential M&A opportunities in Ukrainian agriculture. In 2007, MHP said it had revenues from continuing operations of $478 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $164 million. (Reporting by Dmitry Zhdannikov and Tanya Mosolova; Editing by Paul Bolding)
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