Renat Bekturov, a Chartered Financial Analyst (CFA), shed light on the monumental development in Kazakhstan's capital market—the eagerly anticipated Initial Public Offering (IPO) of Air Astana in a recent LinkedIn post. The airline's IPO has become the talk of the town, and Bekturov provided key insights into the company's plans and the potential impact on the region's financial landscape.
Air Astana took center stage at the Astana International Exchange (AIX) platform, hosting a roadshow presentation to elucidate the terms of the offering, the company's strategic development plans, and essential financial indicators. Air Astana is gearing up to list its securities on three prominent exchanges: the London Stock Exchange (LSE), AIX in Astana, and the Kazakhstan Stock Exchange (KASE) in Almaty.
A distinguishing feature of this IPO is that AIX will be the sole platform to list both ordinary shares and Global Depositary Receipts (GDRs), underlining the airline's commitment to diversify its investor base.
Air Astana has plans to expand its aircraft fleet from the current 49 to an impressive 80 planes by 2028. The company's future trajectory includes the development of new routes in Central Asia and the Caucasus region, encompassing nearly 100 mn people. Air Astana is optimistic about the region's recovery post-pandemic, citing promising prospects for growth.
The price range for the IPO has been set at $8.50 to $11.00 per GDR and $2.13 to $2.75 per share, with the conversion rate of 1 GDR equivalent to 4 ordinary shares. The offering is poised to raise approximately $300mn, projecting a market capitalization ranging between $770mn and $962mn.
Renat Bekturov emphasized the inclusive nature of the IPO, allowing retail investors to participate through AIX's direct subscription feature in the TABYS app. With applications accepted until February 8, 12:00 (Astana time), Bekturov anticipates a surge in interest among Kazakhstani citizens, fostering a new wave of investment.
Drawing parallels with successful IPOs such as Kazatomprom and Kaspi.kz, Bekturov believes that Air Astana's public debut will not only captivate international investors but also play a pivotal role in stimulating the growth of Kazakhstan's stock market and the broader Central Asian region.
Earlier it was reported that the IPO would encompass the release of 141 million ordinary shares on the Kazakhstan Stock Exchange (KASE). Notably, individuals from Uzbekistan have been extended an invitation to partake in this investment opportunity. A notable feature of this IPO is its inclusive character, allowing investors from any geographical location to engage in the process. This reflects Air Astana's dedication to attracting a diverse array of stakeholders who can contribute to the airline's future ventures.
Several well-known financial institutions are actively participating in facilitating this momentous IPO. These institutions include Halyk Finance, Freedom Finance Global, BCC Invest, Jusan Invest, and SkyBridge Invest.
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