TMM Initial Offering Brings Ukraine's Largest Capitalization To Market

Ukraine's leading real estate development company, TMM
(www.tmm.com.ua) placed a 13.11% stake among foreign institutional
investors for roughly USD 105 mln, giving the company an MCap of USD
800 mln - the largest capitalization of any Ukrainian company that has
been floated to date. The book was closed on May 16. Shares were sold
in the form of global depositary receipts issued by the Bank of New
York. The price of a depositary receipt corresponding to one share of
the company amounted to USD 15.45 at placement. The total number of
placed depositary receipts was 6,792,165. Concorde Capital
(www.concorde.com.ua) acted as the sole financial advisor and
bookrunner for the offering.

Proceeds exceeded initial expectations by the company's management
and shareholders. The strong demand for TMM shares led to the company
increasing its initial offering from 10% to 13.11%.

In their first day of trading on the Frankfurt Stock Exchange on
May 29, the company's shares closed at USD 15.84 with a USD 255 ths
volume.

According to Concorde Capital CEO Igor Mazepa, "Intensive
cooperation with a wide range of international investors allowed us to
get a high valuation for the company, whose shares were placed at a
premium to other industry leaders. At the same time, we tried to
balance the interests of the company and investors, especially in
estimating the placement price."

The company intends to use the placement proceeds to implement
existing projects. By the end of the year, OII expects to complete a
USD 5 mln investment project - an engineering center which will be
used to guide construction projects from their development stages to
completion, in compliance with European standards - a unique feature
on the Ukraine market.

OII views the placement as the first step of its long-term target
to attract USD 300-500 mln in equity capital and loans on
international capital markets within the next three years.

TMM CEO Mykola Tolmachev said, "We were driven to enter
international markets by the need for resources required to implement
a new strategy that includes integrated development, neighborhood
construction and to strengthen the company's construction capacities."

According to Tolmachev, the placement was enormously important to
the company's business. He also underlined, "Having placed an equity
stake on a stock exchange, we not only increased our financial
resources but also acquired a reputation that has improved TMM's
standing with financial institutions. Thus, the company got the
opportunity to enlarge its number of creditors and improve
relationships with clients and contractors. The placement allowed us
to draw attention to the company both in Ukraine and abroad, which
also strengthens our competitiveness."

TMM is a leading construction/development company in Ukraine's
business and elite property segments. For the last 12 years, the
company has constructed a total of 325 ths sq. m of housing property.
The volume of the company's current project pipeline is 1 mln sq. m in
Kyiv, Kharkiv, Yalta, and Zhytomir. TMM was founded in 1992.

Concorde Capital is a full-service investment bank offering
services in Ukraine, Russia and other CIS financial markets. Last
year, Concorde Capital attracted over UAH 1 billion in investments for
Ukrainian companies. The company was founded in 2004 by Igor Mazepa,
and in only two years of existence the company has become one of the
largest in terms on trading volume on Ukraine's primary exchange, the
PFTS.