News
12.03.2014
Capitalization of Ukrainian agricultural companies decreased by 30%
Ukrainian agricultural companies represented on the international stock exchanges as of March 11, 2014 lost 29.8 % of market capitalization compared to the similar date of 2013. A year ago 14 main representatives of Ukrainian agricultural industry have been evaluated in 6968,9 mln USD, but today their market capitalization is estimated at 4893 mln USD. It was informed by the Association "Ukrainian Agribusiness Club".
Among assessed companies only three showed increasing of its value: Sugar Union “UkrRos”, Agrogeneration and Mriya with rising by 0.7 (+ 7.7%), 86.3 (+ 134,9%) and 171,13 mln USD (+ 26.1%) respectively for the comparable period. However, the success of the company Agrogeneration caused by its association with agroholding Harmelia. The largest decreases were: Kernel, MHP and Ukrproduct with dropping by 884,5 (-57.5%), 649,9 (-32%) and 272,9 mln USD (-33.1%) respectively.
In 2013, only one Ukrainian company, Cereal Ukraine, has made an IPO at the NewConnect. It specializes in the production of cereals and has positioned itself as the holder of 10% of this market. Currently, the value of its shares in free float has 40 ths pieces (2.25% of the total) and is estimated to be 1 million United States dollars.
"When one makes a more detailed analysis of the changes of market capitalization, it will be obvious that the most of the quotations showed the greatest rate of decline withing the last quarter. If we compare the quotes as of March 11, 2014 with the similar number in November last year, we will see reduced market capitalization during this period by 22.7%, up to 1924,33 mln USD. In such circumstances, we think that Ukrainian agricultural companies need to search for the new opportunities to attract external funding. These questions will be discussed on April 17 at the "V. Investment Agribusiness Forum in Kyiv"-summarized Igor Ostapchuk, Expert on agricultural markets of UCAB.
Association “Ukrainian Agribusiness Club”
3 floor, 146 Zhylianska Str.
01032 Kyiv, Ukraine
Phone/Fax: +380 44 2362097/79