In a strategic move, Air Astana, Kazakhstan’s leading airline, is set to launch an initial public offering (IPO) on the London Stock Exchange (LSE), Astana International Exchange (AIX), and Kazakhstan Stock Exchange (KASE), with the aim of raising $120 million. The funds raised are earmarked for the continued development of the airline, as reported by optimism.kz.
At a briefing in Almaty, Air Astana’s President, Peter Foster, officially confirmed the company’s intention to enter the public capital market. Foster emphasized the significance of this move in their long-term strategy, expressing anticipation for new Kazakhstani and international investors to become shareholders.
The anticipated outcome of the IPO is a potential $120 million influx for Air Astana. According to Foster, these funds will be utilized to propel the airline’s further growth and development. He expressed hope for the success of the IPO but refrained from specifying the potential size beyond the expected transaction amount, indicating that the overall volume could surpass initial estimates.
Dastan Adikhozhaev, Director of the Privatization and Restructuring Assets Department at the Samruk-Kazyna Fund, highlighted the broader context of this initiative. He underscored that this move aligns with the fund’s efforts to fulfill state directives and the comprehensive privatization plan for 2021-2025 endorsed by the government.
The key objectives for the Samruk-Kazyna Fund in Air Astana’s IPO include reducing the state’s economic stake, enhancing corporate governance in response to new public status requirements, raising capital for development, and contributing to the National Fund through transaction proceeds. Additionally, fostering the growth of the domestic securities market and improving financial literacy among the population are crucial targets.
Adikhozhaev disclosed that Air Astana’s proposed deal structure involves offerings in both the national currency and global depositary receipts nominated in dollars. Unlike previous IPOs and SPOs where Samruk-Kazyna or the issuer exclusively sold shares, Air Astana’s IPO is expected to involve three selling parties. This means the company could place securities worth up to $120 million for funding its future development, while existing shareholders – the Fund and British shareholder BAE System – also intend to sell part of their holdings.
The announcement of the price range and the initiation of the investor bookbuilding process, along with roadshows, are expected to take place by the end of January this year. Air Astana had earlier confirmed its intention to list securities on the LSE, AIX, and KASE. This move signifies not only a financial endeavor for the airline but a significant step in Kazakhstan’s economic landscape, as it aligns with broader privatization goals and market development.