Recent changes in the financial market of Ukraine are favorable for the emergence of investor interest in new instruments, and the investment company Concorde Capital plans to bring about a dozen companies to an initial public offering (IPO) in two years, the founder and CEO of Concorde Capital, Ihor Mazepa, has said.
“I perceive this as a personal challenge and my personal ambition and ambition of my colleagues at Concorde: … I give myself, roughly speaking, two years to bring a good ten companies to an IPO,” Mazepa said at the presentation of the UAH 50-100 million IPO of the Veres Rivne People’s Club in Kyiv.
The CEO of the investment company believes that in recent years there has been a good trend in the market, which was previously observed in the neighboring markets of Eastern Europe and Russia. “When deposit rates fall, the investor has a feeling of discomfort. What I have seen for the last six or nine months: there has been such a huge trend that a class, a huge group of investors has begun to form in the country. Our fellow citizens really brought money to the stock market,” Mazepa said.
According to him, now this money goes to American and European exchanges.
“I want to walk this path, create or return this culture of investment to our country,” the CEO of Concorde Capital said.
He also said the company is developing a phone application for investors that will allow them to buy/sell securities online. According to him, the development cost is up to $1 million, and it can be launched before the end of this year or early next year.
The head of the investment group Concorde Capital, Ihor Mazepa, has announced the entry into a project of a cottage village and a hotel in the Shelest suburban complex and the construction of phase two of Goodlife Park in Vyshgorod district of Kyiv region.
At this stage it is planned to send more than $25 million to the implementation of the projects, and the total amount of investments in them, taking into account previous investments, will exceed $60-65 million.
“Previously, the main focus was on the growth of consumption, so we invested in the production of cardboard and cement, now we are betting on de-urbanization and suburban real estate. There are at least three more projects similar in scale to Goodlife and Shelest in the pipeline,” Mazepa said in an exclusive interview with Interfax-Ukraine.
Thus, the group is investing about $10 million in the Shelest cottage community project, located next to the Shelest suburban complex near Kyiv. The housing area in the project will be 10,000 square meters.
In addition, on the territory of the Shelest complex, the construction of its hotel part with 100 rooms, including a SPA, continues. Investment in the hotel project is $15 million.
“In total, Shelest will have $30-35 million [of investment], taking into account previous investments,” Mazepa said.
The construction of phase two of the elite cottage town Goodlife Park has also started. The project provides for the construction of 30 cottages and additional infrastructure. According to Mazepa, the total investment in Goodlife Park is $35 million.
“In addition, we are considering a couple of similar projects in other directions, and we will look for co-investors for them. Accordingly, we expect a decent return on investment,” he said.
As Mazepa said, the de-urbanization trend and quarantine restrictions significantly increased the demand for suburban real estate, which stimulated an increase in rental rates and prices.
“We are witnessing a boom in the suburban real estate market: rental rates have grown by 1.5 times, especially in the premium segment. There are cases when they have doubled. We have simply sorted out everything decent that could be rented. And this, of course, affects the sale of new suburban real estate. If rents go up, then property prices also go up. And along with this, buying activity grows. This is what we have seen for the past nine months. This applies to Goodlife, Shelest, as well as many other suburban stories – everything is perfect there: a new demand began to appear, which we have not yet seen and which we did not expect,” he said.
Ukrainian seaports increase transshipment of cargo to 132 mln tonnes in 10 months
Interpipe, an international vertically integrated pipe and wheel company, based on the results of activities in the second quarter of this year is expected to reduce revenue by 16% compared to the previous quarter, to $ 212 million, EBITDA by 44%, to about $ 48 million.
“We expect Interpipe’s Q2, 2020 EBITDA to amount to about $ 48 million, a 44% quarter-over-quarter plunge. Contributions to Q2, 2020 EBITDA by segment (before reallocation of steel segment EBITDA) are expected to be as follows: negative $ 5 million from pipes (flat quarter-over-quarter), $ 38 million from railway products (a 45% plunge quarter-over-quarter), and $ 15 million from steel (26% less quarter-over-quarter),” according to the estimate of Dmytro Khoroshun, an analyst from Concorde Capital, published in the investment company’s bulletin.
“Revenue from seamless pipe sales should have inched up 3% quarter-over-quarter, to about $ 104 million in Q2, 2020, driven by a 6% increase in sales volumes to 103,000 tonnes, offset by a 3% drop in average sales price to $ 1,015/tonne,” the report says.
“We estimate revenue from welded pipe sales will jump 49% quarter-over-quarter in Q2, 2020, to $ 16 million, due to a 43% gain in volume to 22,000 tonnes and a 4% rise in price to $ 746/tonne,” according to the document.
“We calculate Interpipe’s railway product segment revenue will plunge 34% quarter-over-quarter, to $ 84 million in 2Q20, as a 20% drop in sales volume to 46,000 tonnes will be exacerbated by a 17% drop in price to $ 1,822/tonne,” the expert said.
The partners of Concorde Capital investment company in the transaction for the purchase of assets of HeidelbergCement Ukraine were Vice President of PJSC Galnaftogaz Concern Vasyl Danyliak, as well as businessmen Ivan Shestak and Ihor Zavinovsky.
“The development of companies acquired from HeidelbergCement will be carried out by Ihor Mazepa together with the partners Ivan Shestak, Vasyl Danyliak, and Ihor Zavinovsky,” the press service of Concorde Capital told Interfax-Ukraine.
According to the decision of the supervisory board of PrJSC HeidelbergCement Ukraine, at the end of April Zavinovsky was elected head of the company for a term of three years. According to the report in the information disclosure system of the National Commission on Securities and the Stock Market, in the past five years he has held the post OF Commercial director of New Geodetic Technologies LLC, and does not own shares in HeidelbergCement Ukraine.
As reported, on May 14, 2019 Cyprus-based Overin Limited, associated with Concorde Capital, became the owner of a controlling stake (99.8308%) in PrJSC HeidelbergCement Ukraine.
The Concorde Capital investment group has won the second auction to sell assets used as collateral for commercial loans taken in the National Bank of Ukraine (NBU), Deputy Managing Director of the Deposit Guarantee Fund of Ukraine Svitlana Rekrut has said.
“The auction was held on DebtХ (Delaware, the United States) on January 16, 2019. This is so-called “U.S. platform.” We sold the pool [of assets] for UAH 48.079 million. Only two bidders took part in the auction, and the winner is Concorde Capital,” she said in an interview with Interfax-Ukraine.
Concorde Capital CEO Igor Mazepa confirmed to Interfax-Ukraine that the company won the auction.
The final agreement has not yet been signed.
Rekrut also said that the anchor assets in this pool were the assets of Eurogasbank, including the Geneva Hotel in Truskavets, and other real estate. Literally two weeks before the auction at DebtХ, the ex-shareholder of Eurogasbank, through bankruptcy and the purchase and sale agreement, withdrew the liens.
“That is, the re-registration took place almost on the eve of the auction” Rekrut said.
According to a source of Interfax-Ukraine, the beneficiaries of the Geneva hotel in Truskavets are people’s deputy Andriy Lopushansky (Petro Poroshenko Bloc parliamentary faction) and ex-shareholder of Eurogasbank Oleksiy Ivchenko.
As reported on the website of the Deposit Guarantee Fund, the initial price of the pool of assets with the book value of UAH 6.5 billion was set at UAH 240.394 million. The assets were bought at the lowest price of the lot.
All assets pledged by the National Bank have repeatedly been put up for individual trading on the ProZorro platform and were not sold even after reducing their value to 20% of the book value. Then, these unsold assets were pooled and transferred to the DebtX and First Financial Network (FFN, Oklahoma City, the United States) to sell them using the Dutch model as part of a joint pilot project of the NBU and the Deposit Guarantee Fund. In this case, the specified pool of assets was already put up for auction at DebtX and FFN a year and a half ago.
Eurogasbank was founded in 2006. The largest shareholders in the second quarter 2014 were Oleksiy Ivchenko with 39.6296% of shares, Halyna Ivchenko with 31.9574%, and Khrystyna Ivchenko with 17.7778%.
The NBU on November 17, 2014 approved a resolution on the abolition of the banking license of the bank and its liquidation.