KIEV, Dec 15 (Reuters) - Ukraine's leading drug distributor, Laona, plans to sell at least 25 percent of its shares in an initial public offering in London in 2008, the company's financial adviser said on Friday.
    "The company will become public in two years. The placement is planned in London . Investors will be offered at least 25 percent of shares," said Andriy Pivovarsky, vice president of investment company Dragon Capital.
    Dragon Capital will organise the placement in London . It sold earlier this month a minority stake in Laona to foreign investors, Pivovarsky told Reuters.
    The market capitalisation of the company following the sale totalled $73 million. The shares were placed in the form of warrants and are now traded on the Vienna Stock Exchange.
    "Warrants were bought by portfolio investors and hedge-funds from the and Europe . Investors believe the sector will be growing," he said.
    Pivovarsky said Laona's sales will reach about $230 million in 2006 and $600 million in 2008. They were $130 million in 2005.
    Over 50 firms work in 's drug distribution sector and analysts expect consolidation within the next two to three years.
   Ukraine's stock market is small and illiquid and a number of Ukrainian companies and banks have announced plans to go to foreign exchanges in the next two years. Analysts said they would need to increase transparency and improve corporate governance to ensure successful placements.