30 Apr 2010 13:58

Ukrainian egg holding Avangard sets IPO price at $15 per GDR

KYIV. April 30 (Interfax) - Avangardco Investments Public Ltd, a holding company with Ukraine's largest vertically integrated group for the production of eggs and egg products Avangard, has set a per-GDR price of $15 for an upcoming IPO.

That price corresponds to company capitalization of $937.5 million, an Avangard statement says. Avangard said the indicative price range was $13.8-$17.8.

Up to 20% of share capital will be offered in the IPO, not counting an over-allotment option, but factoring in full option performance granted to placement book-runner Troika Dialog (UK) Ltd ( a subdivision of Troika Dialog ) - 22.3%.

It was announced that the placement would consist of 1.25 million shares on which a like number of GDR are issued. They will begin trading on May 7.

Avangard intends to use the proceeds to finance the expansion and diversification of its egg business, including completing the construction of facilities in Khmelnytsky and Kherson regions, and possibly for expanding production capacity at its plant in Ivano-Frankovsk region.

Avangard produces eggs and products in fourteen Ukrainian regions, accounts for 23% of egg-production in the country and 53% of the egg products made there, and also exports to 156 countries - mostly to the Middle East and Asia.

Company revenues increased 5.8% to $319.86 million last year, while EBITDA rose 33.7% to $152.09 million.