Ukrainian Egg Producer Avangard Plans London Offering to Finance Expansion
Avangardco Investments Public Ltd., Ukraine's biggest producer of eggs, said it plans to sell shares in an initial public offering on the London Stock Exchange to fund expansion.
Avangard, as the company is also called, will sell new shares in the form of global depository receipts, it said in a statement today. Troika Dialog is global coordinator and book- runner for the offering. Avangard will use the proceeds from the IPO to complete two factories in Ukraine that will each have a annual capacity of 840 million eggs.
The Kiev-based company plans to raise about $200 million and may sell a stake of 20 percent to 25 percent, three people with direct knowledge of the sale, who declined to be identified before the plan was officially announced, said last week.
London IPOs are reviving after equities rallied. Twelve companies managed initial offerings since the beginning of March, compared with four in February, according to data compiled by Bloomberg. African Barrick Gold Plc's $882 million IPO on March 19 was the biggest in London since 2008.
Avangard's earnings before interest, tax, depreciation and amortization were $152.1 million on sales of $319.9 million last year, it said in the statement. Net debt was $102.6 million.
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