Air Astana, along with its subsidiary FlyArystan, has confirmed its intention to conduct an initial public offering (IPO) of its Global Depositary Receipts (GDRs) on the international market. Simultaneously, the company intends to offer shares and GDRs in Kazakhstan, QazMonitor reports citing Air Astana’s announcement.
The roadshow is set to commence on January 29, 2024, and will include the sale of existing shares and GDRs owned by BAE Systems (Kazakhstan) Limited and the Sovereign Wealth Fund Samruk-Kazyna, along with newly issued shares and GDRs of the airline.
Air Astana intends to secure admissions as follows:
1. Inclusion of GDRs in the standard listing segment of the Official List of the Financial Conduct Authority (FCA) and authorization for trading on the main market of the London Stock Exchange (LSE).
2. Admission of shares and GDRs to the official list of the AIX and authorization for trading on the AIX.
3. Admission to the "Premium" category of the "Shares" sector on the "Main" market of the Kazakhstan Stock Exchange (KASE) and authorization for trading on the KASE platform.
The final offering price and the maximum number of GDRs and shares to be sold will be determined after completing the book-building process. Admission to LSE and AIX is expected in February 2024, while admission to KASE is anticipated in the coming days.
Peter Foster, President and CEO of Air Astana expressed his excitement, stating, “On behalf of the Company, I am delighted to formally confirm our intention to bring Air Astana Group to the public markets. As the largest airline group in Central Asia and the Caucasus, we are confident that our industry standing, market position, and growth profile present a compelling investment opportunity. This is an important milestone in our long-term strategy and we look forward to welcoming new Kazakh and international investors as shareholders.”
On January 12, 2024, the airline announced its intention to float, aiming to raise $120 million to support Air Astana's growth strategy.
BAE Systems, holding 49% of the airline, expressed its intention to provide an over-allotment option of up to 15% of the GDRs of the Global Offer GDRs. Local investors, both institutional and retail, will have the opportunity to buy securities on AIX and KASE.
For the LSE placement, the company will engage Citigroup Global Markets Limited and Jefferies International Limited as joint global coordinators and bookrunners, alongside WOOD & Company Financial Services, a.s. as a joint bookrunner. Halyk Finance will be involved as a joint bookrunner for AIX and KASE, with Freedom Finance Global PLC as the lead manager, and BCC-Invest, SkyBridge Invest, and Jusan Invest as co-managers.
The IPO of Air Astana had been rescheduled several times. On September 1, 2023, President Kassym-Jomart Tokayev announced that the IPO was scheduled for 2024, aiming to significantly enhance transparency and asset management efficiency.
In January 2023, Air Astana's CEO, Peter Foster, informed President Kassym-Jomart Tokayev about preparations for the IPO in 2024.
Air Astana, a major airline in Central Asia headquartered in Astana, currently has 51% of its shares owned by the Sovereign Wealth Fund Samruk-Kazyna and 49% by the UK's defense company BAE Systems.
