KSG Agro of Ukraine Shares Rise on First Warsaw Trading Day

KSG Agro SA, a Ukrainian grain and sunflower seed producer, gained in its first day of trading on the Warsaw Stock Exchange.

The stock rose 0.5 percent to 22.1 zloty at 11:56 a.m. in Warsaw, valuing the company at 330 million zloty ($124 million). The shares earlier climbed as much as 3.9 percent.

KSG, the sixth company from neigboring Ukraine to list in Warsaw since November, sold 108.4 million zloty of shares at 22 zloty each in an initial public offering last month. Industrial Milk Co. of Ukraine rose 2.3 percent over its IPO price when the stock started trading in Warsaw yesterday.

Ukrainian companies are seeking to list in Warsaw in their biggest numbers ever after demand spurred gains in the country’s stocks of as much as fourfold. A total of eight companies including Kernel Holding SA (KER), a sunflower-oil producer, Astarta Holding NV (AST), a sugar company, and Milkiland NV, a dairy company, have sold more than 2 billion zloty of shares in Poland in five years, according to data from the Warsaw bourse.

The exchange estimates that five to 10 more companies from outside Poland will start trading this year, Chief Executive Officer Ludwik Sobolewski said yesterday. The majority of debuts will come from Ukraine, he said. The growing number of listings from the country prompted Warsaw to start an index of Ukrainian companies as of yesterday.

Kernel, Astarta

Shares of Kernel, which joined Warsaw’s benchmark WIG20 Index in March, have surged threefold from its offering price in 2007 while Astarta’s stock jumped almost fourfold since its share sale five years ago. Coal producer Sadovaya Group SA has gained 47 percent since its December offering.

The Warsaw bourse is the third-largest in emerging Europe after Russia and Turkey, with a total market capitalization of $223 billion, according to Bloomberg data. The Polish exchange has been the fastest-growing market in central Europe in the past 10 years, more than doubling the number of traded companies and almost tripling daily turnover, according to its website.

To contact the reporter on this story: Pawel Kozlowski in Warsaw pkozlowski@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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