Uralkali Continues to Gain
Urakali will announce the results of its IPO of 14.38 percent of its stock in Russia and London today. After an unsuccessful attempt at an IPO last year, the company managed to sell its stock at the upper price range. It also stimulated investor interest in other Russian mineral fertilizer producers. The capitalization of several of those companies has doubled in the last month.
The market for mineral fertilizers is on the upswing, with developing countries, such as China, India, Brazil and those of Southeast Asia, leading the way. Prices for the stock of fertilizer producers are experiencing a corresponding blossom. Quotations from Uralkali have risen 164 percent since the beginning of the year, and 37 percent since September 11, when the IPO was announced. Other Russian chemical fertilizer companies have seen similar growth.
Analysts note interest in companies on the second echelon as well. Stock in Silvinit, the second largest producer of calcium chloride after Uralkali, was not liquid because of low demand for it. In the last month, it has gained 36 percent, thus doubling in price since the beginning of the year. The Akron holding, another chemical fertilizer producer, has gained 28 percent in the last month, 15 percent of that in the last three trading days on the stock market. Akron owns 6.08 percent of Silvinit.
www.kommersant.com
All the Article in Russian as of Oct. 12, 2007
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