Air Astana, the national air carrier of Kazakhstan, has announced its intentions to proceed with an initial public offering (IPO) of its Global Depositary Receipts (GDR) as a global offer, Qazaqstan Monitor reported. The offering will also include a concurrent local offering in Kazakhstan in the form of shares and GDRs.
Details of offering
The offering is expected to include the sale of shares and GDRs held by BAE Systems (Kazakhstan) Limited and Sovereign Wealth Fund Samruk-Kazyna JSC, in addition to new shares and GDRs issued by Air Astana. As part of the IPO, the company expects to raise approximately $120mn to support its growth strategy.
Market listings
If the carrier moves forward with the offering, the company will apply for the admission of the GDRs to the standard listing on the Financial Conduct Authority’s Official List, to trading on the main market for listed securities of the London Stock Exchange (LSE), and for the admission of the shares and GDRs to the official list of the Astana International Exchange (AIX) and to trading on the AIX. The company has also made an application for the shares to be admitted to the “Premium” category of the “Shares” sector of the “Main” market of the KASE.
Investment opportunities
On the local market, both institutional and retail investors will have the opportunity to acquire securities, including GDRs and shares on AIX, and exclusively shares on KASE.
Coordinators and bookrunners
To facilitate the offering on the LSE, the company has appointed Citigroup Global Markets Limited and Jefferies International Limited as joint global coordinators and bookrunners, along with WOOD & Company Financial Services as joint bookrunners.
For the placement of securities on AIX and KASE, the company has enlisted Halyk Finance as joint book-runner, Freedom Finance Global PLC as lead manager, and JSC BCC-Invest, JSC SkyBridge Invest, and JSC Jusan Invest as co-managers.
Over-allotment option
Furthermore, BAE Systems intends to provide an over-allotment option, representing no more than 15% of GDRs in the global offer. The GDRs are backed by common shares of Air Astana, with each GDR representing four shares.
Next steps
The book-building process, including the announcement of the price range and roadshow, is expected to commence around the end of January 2024. Additional information will be communicated at a later date.
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