Ukrainian Railways to Raise Up to 230 Billion Hryvnia in IPO

Ukrainian Railways to Raise Up to 230 Billion Hryvnia in IPO

Public joint stock company to offer 229 880 000 000 hryvnia in shares

Ukrainian Railways (“Ukrzaliznytsya”), created on the base of State Administration of Railway Transport of Ukraine, plans to launch its initial public offering, setting a price range that could see it raise as much as 230 billion UAH.

The amount of the authorized capital of Ukrainian Railways was established to equal 229 879 115 000 UAH. This figure reflects the value of assets less liabilities of the enterprise, according to calculations by the Cabinet of Ministers of Ukraine.

According to the release of the Cabinet of Ministers of Ukraine №735 from September 2, 2015:

"To carry out a private placement of the first issue of shares of public joint stock company Ukrainian Railways (hereinafter - the Company) in the amount of 229,879,115 shares with a nominal value of 1000 hryvnia each." The same decree approved the charter of PJSC "Ukrainian Railways".

The Management Board Chairman was instructed to launch the process of state registration as well as registration of share placement with the National Commission on Securities and Stock Market according to the service contract between the company issuing shares and the Central Securities Depository. The Management Board Chairman will also take action on the opening of accounts and a number of other responsibilities.   

Property valuation and property rights of Ukrainian Railways was conducted by Deloitte. According to the results of expert assessment, the value of assets is approximately 245 billion UAH excluding assets in annexed Crimea and the zone of the antiterrorist operation in the Eastern regions of the country.

The process of incorporation of Ukrainian Railways began with the approval of the statute of the future public company. Charter regulates the three-tier management system with clear division of its functions and competence of the management which changes from sole management to board. It is expected that the changes will improve the transparency of management processes and help reduce the number of loopholes for corruption.

"This step makes it possible to begin the registration process of the public company and complete the adoption of government regulations on the approval of the Board of Directors, as well as the supervisory board and the audit committee of Ukrainian Railways”, - says the press-service.

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