Thursday April 8, 9:54 am Eastern Time
Ukraine chemicals maker and pipe plant issue ADRs
KIEV, April 8 (Reuters) - Two Ukrainian companies, chemicals producer Stirol and pipe plant Nyzniodniprovsky Trubny Zavod, launched level-one American depository receipts (ADR) programmes on Wednesday, a custodian bank said on Thursday.
''On April 7, the Bank of New York announced that two more Ukrainian companies established a sponsored ADR programme with the Bank of New York,'' Head of Custody Serhiy Berezhny, at ING Bank Ukraine which acts as a local custodian for both programmes, told Reuters.
Berezhny said one of Stirol's ADR represents five local shares, while one ADR of Nyzhniodniprovsky Trubny Zavod represents six local shares.
Legal adviser Baker & McKenzie said on Wednesday Ukrainian companies had set no volume limits for their level-one ADRs issues.
Earlier this week, three Ukrainian companies -- major oil and gas producer Ukrnafta, electricity generator Dniproenergo and major steel mill Azovstal -- became the first in the ex-Soviet state to launch their ADR programmes.
Level-one ADRs are issued on existing capital to give foreign investors access to underlying shares and raise liquidity. ADRs are traded in the United States.
Ukraine's own sleepy stock market has ground to a virtual halt in recent months, with the index of the main PFTS over-the-counter electronic trading system, which once accounted for about one third of the market, down to around 19 from 100 at its launch in October 1997.
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Related News Categories: chemicals, IPOs, mining/metals, US Market News, utilities
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