UWC: Unique companies draw investors’ interest even in difficult market conditions
Research and production corporation “United Wagon Company” (RPC UWC or the Holding) (MOEX: UWGN) took part in the work of Moscow Exchange & UBS Investment Forum, London.
The event was attended by investment community representatives keen on cooperation with the largest exchange platform of Russia, gathered to discuss the problems of the Russian economy as a whole and its separate sectors, as well as the prospects of financial markets’ development.
First Deputy CEO for General Management at RPC UWC Dmitry Bovykin in his speech made in the round-table discussion dedicated to the issue “Transport and infrastructure: the response to economic challenges” pointed out that despite the financial crisis, freight turnover on the Russian railroad has a positive dynamics. This dynamics is basically connected with the growth of export of Russian resources, primarily coal, which became more competitive in the international market due to the devaluation of the ruble. According to RPC UWC top manager it is possible to build up freight turnover subject to a significant increase in trains’ loading capacity. Today this problem is being solved by new generation railcars, which operation efficiency and superiority is recognized by the largest commodity producers of Russia. New generation railcars are forcing a standard rolling stock out of the consumption and production structure due to the railcars’ high commercial and operational performance indicators.
“United Wagon Company works in a promising market, providing mass operation of new generation railcars. The integrated effective business-model of the holding was highly appreciated by the investors in the course of IPO in April 2015. The transaction had been not only a success in a difficult market environment, but also a first initial public offering of a domestic railcar manufacturer and it had as well been the first IPO in Russia since February 2014,” – Dmitry Bovykin emphasized.
It is to be recalled that, Research and production corporation “United Wagon Company” placed 12.22% of shares for a total amount of 9,028 billion rubles. More than 50 investors took part in IPO. Foreign investors provided for 38% of demand for the shares. A demand from institutional investors amounted to 82% of the supply, including pension funds – 11%; retail and private wealthy investors acquired 18%.