Dragon-Ukrainian Properties and Development (DUPD), the real estate investment arm of Kiev-based investment bank Dragon Capital, has issued a statement to clarify misconceptions it says may have arisen at a press conference organised by the bank's brokerage unit last week.
Dragon-Ukrainian Properties and Development (DUPD), the real estate investment arm of Kiev-based investment bank Dragon Capital, has issued a statement to clarify misconceptions it says may have arisen at a press conference organised by the bank's brokerage unit last week.
In response to a question raised at the event, Dragon Capital's brokerage unit had said it was proposing to raise between $100 mln and $125 mln (EUR 68.6 mln and EUR 85.5 mln) through an issue of Global Depositary Shares for Jachin Holdings, a British Virgin Islands company formed to develop a suburban housing development project near Kiev. This fundraising was apparently wrongly cited by several media as being for the benefit of DUPD 'due to the misinterpretation of a journalist', DUPD said.
However, DUPD said on Tuesday that it does intend to carry out a totally unconnected private placement to raise approximately $100 mln by the end of this month. Participation in this private placement will likely be open to existing investors and selected new investors. DUPD intends to use the proceeds of the placement to fund new investment opportunities in the development of commercial properties and large-scale residential projects in Ukraine.
The private placement is subject to a number of conditions, including admission of the new shares to London's AIM market. As reported by PropertyEU in May, the $208 mln (EUR 155 mln at that time, although only EUR 143 mln at the current exchange rate) raised that month by DUPD's IPO on AIM was the largest Ukrainian listing up to that point.