Avangard begins trading on LSE

Avangardco Investments (LSE: AVGR LN) announced this morning that its GDRs were admitted to the official list of the UK Listing Authority and to trading on the London Stock Exchange. Unconditional dealings commenced this morning; conditional dealings were allowed from April 30. Avangard is the #1 producer of shell eggs and egg products in Ukraine. In 2009, Avangard posted revenue of USD 319.9 mln and EBITDA of USD 152.1 mln. Ruslan Patlavskyy: Based on the USD 15/GDR offer price, announced earlier, the total IPO proceeds should bring USD 187.5 mln to Avangard. The funds raised should be directed toward the completion of two shell egg production plants in Khmelnitsk and Kherson regions, which will increase Avangard’s capacities by 46% to a total of 5.4 bln shell eggs per year. Besides that, the company plans to increase its dry egg product output 3.3x to 10 mln/day. As a result, we calculate the company should be able to expand its current 23% market share by 6%-8% within the next 2-3 years.