UPM-Kymmene plans to list company shares in the United States

Archive 29.4.1999 0:00 EEST

UPM-Kymmene Corporation has started preparations to seek the listing on the New York Stock Exchange. According to the preliminary timetable the listing could take place by autumn. The listing requires approvals by the authorities.
By this listing UPM-Kymmene aims at increasing the visibility and the liquidity of the company's shares in the international markets and improving opportunities to broaden the shareholder base. These could in turn have a positive effect on the company's valuation. The listing would also facilitate raising capital in the US capital market.
The North American funds hold approximately one fourth of the UPM-Kymmene shares. Of these shares some one tenth, i.e. 6.5 million, is traded in ADR's on the OTC market. The unlisted sponsored (Level-one) American Depositary Receipt program was launched in 1996.
UPM-Kymmene is one the largest paper and forest products groups in the world. The United States accounts for ten percent of UPM-Kymmene's total turnover of EUR 8.365 million. In magazine papers the sales in the US totals for EUR 700 million and the market share is 12 percent. In the United States UPM-Kymmene has five production plants and a number of sales companies. The largest production plant, Blandin Paper Company in Minnesota, produces coated magazine paper (LWC). UPM Converting division has production units in Alabama, Illinois, North Carolina and Texas. The number of UPM-Kymmene employees in the United States is 1,500.