As it has been repeatedly reported many Ukrainian companies this year ceased their IPO plans due to low potential of Western stock exchange
markets, in particular instability in Europe and U.S. regions. According to Ernst&Young, the volume of transactions in Q3 dropped more than twofold
compared to the Q2 from US $65.6 bn to US $ 28.5 bn. As calculations of Dealogic analytical agency show, in Q 3 2011 listings of 22 IPOs were
postponed and 49 – recalled. Dragon Capital Managing Director and Head of Investment Banking stated that approximately 15 Ukrainian companies were planning their IPOs this year, potentially attracting up to USD 1 billion.

During that period, KGS Agro, Industrial Milk Company, Westa, Ovostar and Continental Farmers Group listed their securities at a public exchange.
However, in the Q3, only two issuers managed IPOs – French ag company AgroGeneration that owns assets in Ukraine (attracted US $16 mn for
NYSE-Euronext) and Coal Energy company (attracted US $81.4 mn of new share capital at Warsaw Exchange). We assume that investors are
willing to either invest in low-risk-stable return stocks or even hold cash rather than risk their investments.

UAIndex