July 27, 2006

Kyiv Post

The company KP Media, previously known as KP Publications, one of the leaders on the Ukrainian print media and Internet market, held its first Initial Public Offering July 27.

KP Media placed 20 percent of its shares on the First Securities Trading System (PFTS), Ukraine’s principal stock exchange.

The company’s advisors on the IPO were Kyiv-based investment bank Dragon Capital and investment company ABD Capital Ukraine.

Andriy Pyvovarskiy, vice president of Dragon Capital, said that Western portfolio funds were the main buyers of securities in KP Media.

Jed Sunden, the founder and head of KP Media, said that 7 percent of the company’s shares will also be given to company employees. Sunden said the IPO should allow the company to raise around $11 million for business development and new projects.

In March 2006, KP Media successfully sold bonds to a group of Western European investors.

“With the funds raised from that bond issue, we were able to publish the 15 Minutes newspaper,” said Sunden, adding that the company plans to launch several new Internet projects and print publications in the near future.

KP Media said in a statement that it plans to increase its share of the Ukrainian print media and Internet markets and develop its presence in the regions through the launch of new projects. The company said that the country’s rapidly growing advertising market should help it achieve these goals. According to industry forecasts, Ukraine’s advertising market will be worth $800 million in 2006, a 20 per cent rise on last year.

KP Media has 11 big projects at present, including the magazines Korrespondent, Afisha and Pink, the newspapers Kyiv Post and 15 Minutes, the Internet portal bigmir.net and the Korresponent.net news site.

The company holds a 15 percent share of the magazine market and 50 percent of the Internet market in Ukraine. KP Media said it changed its previous name, KP Publications, to the company’s new name to show the company’s interest in various types of media.

KP Media was founded in 1995 by Jed Sunden, a U.S. citizen who has lived in Ukraine for over 12 years. The company has over 500 employees.