Ukrgazbank Plans 10% Private Placement In 2006.
21 June 2008
Ukrgazbank, Ukraine’s 19th-largest bank in terms of assets, plans to place up to 10% of its assets with private foreign investors later this year. The bank plans to sell the stake at a price that exceeds the shares’ par value by 7.5 times. Concorde Capital: The management’s desired price implies a MCap of USD 446 mln (USD 44.6 mln for a 10% stake). If we use the bank’s estimated book value for 2006 of USD 80 mln this would translate into a P/B multiple of 5.6. However, the bank could revaluate its fixed assets to increase its end-2006E equity to about USD 100 mln, which would translate into a more reasonable P/B multiple of 4.5.
