There have been several official statements released regarding public placement of Ukrainian companies in general and agro holdings in particular on Warsaw Stock Exchange this year. According to those statements it becomes evident that stock exchange is currently over-saturated with Ukrainian companies and majority of the investors are not seeking to purchase shares at least at this very moment. Controversial situation in Europe with debt and potential development of macroeconomic issues in Eurozone make most of the investors very cautious in terms of placement of funds. Therefore investors would like to wait and see what happens before committing to any decisions. Funds attracted from public placements are usually used by the companies for expansion of their activities, increasing landbank, modernization and further growth.

AgroInvest comment: We think that even earlier than fall, we will see Ukrainian agro holdings seek for investment opportunities because based on the first quarter results growth of the company will be directly related to company’s profit level as economy of scale seems to majorly affect financial performance.

For more detail please refer to the UAIndex Daily (May 22 issue).

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UkrAgroConsult