Market overview

Ukrainian Stocks Remain Volatile as Ferrexpo Rebounds and Swarmer Faces Sharp Swings

Ukrainian stocks continued to show mixed and highly volatile performance last week, with Ferrexpo (FXPO) extending its rebound after the resumption of trading in London, while US-listed defense technology company Swarmer remained subject to extreme price swings. Ferrexpo shares gained 17% over the week to GBp 32.5. The stock has experienced exceptionally volatile trading since its suspension was lifted, initially surging to GBp 42 before falling to about GBp 28.5. As part of Ferrexpo’s recapitalization, Kernel owner Andriy Verevskyi acquired a 22% stake in the company for USD 50mn. Ferrexpo’s largest shareholder, Kostyantyn Zhevago, is also participating in the capital raise, with his stake expected to stand at about 45% following the issuance of new shares. The ownership of other shareholders will be diluted to about 33% from 51%.  

Another Ukrainian stock showing exceptionally volatile trading is Swarmer, the defense technology company listed on the New York Stock Exchange. The shares are up 65% since their IPO but have plunged 46% over the past month. Since the listing, the stock has traded in an exceptionally wide range of USD 12 to USD 83 a share. Swarmer shares currently trade at about USD 20.8, implying a market capitalization of roughly USD 330mn. The company has announced plans to acquire Ukrainian ground robotic systems maker Ratel Robotics for USD 224mn. The acquisition would rank among the largest deals in Ukraine’s unmanned-systems market and highlights growing investor and defense-industry interest in technologies developed and tested during the war. Founded in Ukraine in 2023, Swarmer is now headquartered in Austin, Texas. The company develops artificial-intelligence software that allows groups of drones to coordinate their operations and autonomously determine which aircraft should engage a target first.