Astarta's sweet stocks
Although registered in Holland, agri-industrial holding Astarta-Kyiv will be the first Ukrainian company to be listed on the Warsaw Stock Exchange (WSE). "The WSE has very good indices, it is growing dynamically and is a leader in Eastern Europe," says the company's general director and founder, Viktor Ivanchyk, explaining why his company chose to go public in Poland. He adds that Ukrainian legislation does not protect investors well enough, but on the other hand, Polish wholesalers are interested in the Ukrainian market.
Astarta is one of the biggest producers of sugar in Ukraine. The holding comprises five sugar plants, over 20 agricultural firms that produce sugar beet, other crops and farm cattle, and a fodder and canning factory. However, processed sugar accounts for 52 percent of the company's revenues.
The company will issue up to 7.6 million shares. Between zł.127.3 million and zł.180.9 million raised from the IPO will be mostly spent on organic growth as well as acquisitions. The holding wants to modernize its sugar-processing plants and buy new technologies. "We forecast that thanks to investments and modernization we will grow rapidly," Ivanchyk said. "We are also planning to acquire other companies in order to become the main consolidator on the highly fragmented market," he adds. With a 4.6-percent share in the production of sugar in Ukraine, Astarta is one of the five biggest producers, whose overall market share amounts to 30 percent. "In 2010 we want to be a leader on the Ukrainian market," stressed Ivanchyk. The company also wants to increase its exports to the EU.
Astarta's management appears optimistic about the company's prospects. The company's sugar production and sales have been growing along with rises worldwide in the price and consumption of sugar. "In 2005, revenues from sales reached EUR 51.8 [zł.203] million, which is two-and-a-half times more than in 2003," emphasized the company's financial director Petro Rybin. Last year, Astarta registered a net profit of EUR 9.7 (zł.38) million.
