As Ukraine’s leading investment house, Dragon Capital has developed a deserved reputation for unrivaled performance on the country’s equity capital markets, leading the way both in terms of total number of deals completed and total deal value. So in 2007, when more Ukrainian companies completed IPOs or private placements than ever before, naturally Dragon led the way.

Dragon Capital alone accounted for nearly one-third of the more than $1.8 billion in equity capital that flooded the Ukrainian IPO/private placement market in 2007. With the average deal size for equity transactions doubling to nearly $80 million, Dragon tallied 10 ECM deals in the country, three of which reached or exceeded $100 million: the $208 million flotation of Dragon-Ukrainian Properties & Development fund on AIM; a secondary offering for DUPD of $100 million, and a $100 million private placement for Ukrainian pure-play lending institution IMB Group.

In many ways, 2007 was the Year of Dragon Capital. The company brought to the market various companies such as leading sugar producer UkrRos; world-renowned aircraft engine manufacturer Motor Sich; growing agro-food producer Creativ Group, and hospitality developer Clubhouse (7 DaysTM). These deals and others helped propel Dragon to first place in the country for the second year in a row in terms of total number of deals and combined deal value, bringing the total amount of capital the company has raised for Ukrainian companies since 2005 to more than $1 billion.

M&A activity grabbed a greater share of the spotlight in Ukraine last year and Dragon Capital notched more M&A deals too. Dragon Capital closed three deals in the booming financial sector as increasing numbers of Ukrainian banks and insurers found foreign buyers, confirming the already strong interest towards such companies among foreign strategic investors and fueling positive sentiment for their domestically traded peers. Other Dragon M&A transactions involved the retail and manufacturing sectors.

The increasing interest being shown by international investors in Ukrainian companies and the large amount of capital attracted to the market highlights Ukraine’s economic potential and supports efforts to increase the capitalization of local companies. Our estimates show domestic companies should be able to attract at least $2.4 billion through public and private placements in 2008.

To round out the year in investment banking, Dragon Capital’s third annual Ukraine Investment Conference proved to be an immense success. The conference grew by more than 50% over 2006, with more than 150 foreign investors attending. What’s more, shortly after the conference we added yet another Euromoney award as Best Equity House in Ukraine, with this highly respected financial publication noting Dragon Capital “is strides ahead” of its competitors in terms of IPOs/private placements.