Alchevsk Coke (ALKZ) Likely To Increase Charter Fund 13 Fold

The company’s AGM will discuss the prospect of increasing its charter fund from USD 10.5 mln to USD 149.1 mln on Sep 23. The increase in the statutory fund will be aimed at financing the construction its coke battery and replenishing its operating assets. Concorde Capital: Alchevsk Coke, controlled by the Industrial Union of Donbass (IUD), initially planned to increase its charter fund in October 2004. However, this year the additional issue will likely be carried out, as the company needs to finance the construction of its coke battery. After the new coke battery has been commissioned, IUD?s Ukrainian steel mills will be fully sufficient in coke. As for shareholders, the new emission will cause significant share dilution for employees with stakes in thee company. This will reduce the free float available for brokers to buy locally.