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ГлавнаяKDM Shipping plans public offering in Poland

KDM Shipping plans public offering in Poland

KDM SHIPPING CONSIDERS RAISING CAPITAL BY ISSUING SHARES ON THE WARSAW STOCK EXCHANGE

The KDM Shipping Group, one of the leaders of the Ukrainian shipping industry, primarily involved in the niche segment of dry bulk river-sea freight in the Black, Azov and Mediterranean sea regions, decided to raise capital through an issue of shares on the Warsaw Stock Exchange. The company plans to meet all necessary legal requirements and publish the prospectus within the next few days.

The Company’s advisers in the process of going public are KBC Securities N.V., Polish Branch (Lead Manager of the offering), Jaspen Capital Partners (Co-Lead Arranger of the offering), Baker & McKenzie and Dr. K. Chrysostomides & Co LLC (legal advisers). KPMG are the auditors of the Company.

The KDM Shipping Group is one of the leaders of the Ukrainian shipping industry in its region of activity. The Group’s cargo fleet consists of 8 river-sea, dry cargo vessels of total 25,206 DWT, which due to their shallow draft allow access to major river and sea ports in the Black and Azov sea regions. The Group also provides passenger river transport services on the Dnieper River in the Kiev region (operating a fleet of 8 passenger river vessels), as well as ship repair services at its own shipyard in the city of Kherson. The Company also has its own ship agency in selected ports as well as its own crewing department, allowing the Group to benefit from certain cost efficiencies and to sustain competitive advantages.

In its main activity of dry bulk shipping, the Group focuses primarily on shipments of grain, however, it transports also scrap metal, sunflower seed meal, wood and bran, general cargo and other products. The Group transports cargo predominantly from the ports of Russia and Ukraine to the ports located in Turkey, Georgia, Italy, Greece and Albania. In 2011 the Group shipped total cargo of approximately 665,000 tonnes, compared to approximately 529,000 tonnes in 2010.

In 2011, the international economic rating of “League of the Best,” based on data of the State Statistics Committee of Ukraine, ranked the Group seventh in freight river transport, third in maritime freight transport, and fourth in building and repairing of ships, placing the Company among the leaders in various segments of the shipping industry in Ukraine.

The Company’s principal shareholder is Konstantyn Molodkovets, founder and CEO, who holds 78.5% of the shares. The other 21.5% of the shares are held (directly or indirectly) by other individuals.

The Group employed about 250 people as of the end of 2011.

FINANCIAL RESULTS

In 2011 the Group generated revenue of USD 29.2m and earned a net profit of USD 14.2m, compared to USD 13.9m and USD 5.1m respectively in 2010.

Groups revenue and profitability in 2011 increased and are close to pre-crisis levels of 2008 due to general increase in freight fees that resulted from lifting of the export ban on grain in Russia and tariffs in Ukraine, increase number of return cargo and decrease in the number of off-hire days, as well as by more extensive ship repair contracts and better weather influencing passenger business.

The Group also delivered strong financial performance in 2009-2010 despite difficult economic and financial situation in Ukraine and worldwide. The Group’s revenue structure in 2011 was as follows:

STRATEGY

The Group’s strategic goals include:

  • Increasing the scale of dry cargo freight operations to capitalize on the expected growth in importance of regional export of grain
  • Taking advantage of good market conditions for fleet expansion by adding new and used vessels
  • Increasing the market share in the shallow river-sea dry cargo segment in the Black and Azov seas region
  • Expanding shipyard operations to satisfy increasing external and internal demand for repair services, and increasing the scale of shipbuilding activity
  • Entering new segments of touristic and catering river activity in the city of Kiev.

Konstantyn Molodkovets, CEO of KDM Shipping Ltd, commented: “After analysis of various scenarios of raising capital, as well as first assessment of potential interest from side of WSE investors, we decided to carry out a public offering on the Polish market and list our shares at WSE. We want to accelerate realization of our growth strategy and take the fullest advantage of very good prospects for growth in dry bulk river-sea freight in the Black, Azov and Mediterranean sea regions in which we operate. We believe that investors will appreciate solid fundamentals and unique business model of our company”.

For more information please contact:

Magda Kołodziejczyk
M+G
Tel. (+48) 22 625 71 40, 501 168 807
e-mail: magda.kolodziejczyk@mplusg.com.pl

More information also available at www.kdmshipping.com

Disclaimer

This publication is for promotional purposes only and under no circumstances shall it constitute the basis for a decision to invest in securities of KDM Shipping Public Limited (the “Company”). The offering prospectus (the “Prospectus”), prepared in connection with public offering of shares in the Company to investors in Poland and admission of all of the Company’s shares to listing and trading on the Warsaw Stock Exchange (the “WSE”), is the sole legally binding document containing information on the Company and the public offering of its shares in Poland (the “Offering”).

The Prospectus will be submitted for approval to the Cyprus Securities and Exchange Commission, the Cypriot capital markets supervision authority (the „CySEC“), and will be made available to the public once approved and all the conditions provided under Section 31 of the Cyprus law on the conditions for making an offer to the public of securities, on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market of 2005, Law 114 (I)/2005 and Art. 37 of the Polish Public Offering Act dated 29 July 2005 are met, i.e., once the CySEC approves the Prospectus and once the Polish Financial Supervision Authority has been notified by the CySEC of the approval of the Prospectus and has received a certificate of the approval of the Prospectus along with the Prospectus and a translation of its summary into Polish.

The Prospectus in electronic form will be available on the following websites: of the Company (www.kdmshipping.com) and KBC Securities N.V. (Spółka Akcyjna) Oddział w Polsce (www.kbcmakler.pl).

The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to US persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.