News

May 08, 2008

MHP’s London Listing Goes Almost Unnoticed In Ukraine, But At A Potential $2bn Valuation It’s Certainly Arousing Interest In The City

By Sally White

When a company has 36 per cent of its domestic commercial market, it’s probably understandable that floating on the London market does not rate as local news. That’s the way it seems with Ukraine’s leading poultry producer, Mironovskiy Hlebroproduct (MHP) anyway. The company’s plans to raise US$500 million and issue 10.75 million new shares to international investors do not even feature on its website. More attention has been paid to that news in London, however, where listed agriculture companies are in short supply. MHP certainly hits radar screens, as its market debut will see it capitalised at between US$1.5 billion and US$2 billion.

Ukraine’s agriculture sector is already represented on the UK stock market, but this will the first locally run company to float. Already quoted is Landkom, which is buying up parcels of land from the local small holders to farm there. MHP is one of Ukraine’s largest companies. Last year its underlying earnings were US$164 million, up from US$141 million in the previous year on sales that had doubled over the same period to US$478 million.

"We believe that the IPO offers investors the chance...