Kazakhstan’s IPO Companies Have ‘Cash Stability’

May 5, 2012

Kazakhstan   launches People’s IPO program website

Kazakhstan has launched the awareness-raising campaign for the People’s IPO program, the Samruk-Kazyna Sovereign Wealth Fund said today.

The hot line for the population is 7 800 080 50 70 has started working.

Calls in Kazakhstan are free of charge.

Moreover, there is a special number for Almaty: 7 (727) 250 70 00.

The hot line is open daily, seven days a week from 9.00 to 22.00.

Everybody can call and ask a question about the People’s IPO program. Operators speak Kazakh and Russian.

The official website is www.halyk-ipo.kz.

One can find the latest news about the program, read interesting articles, interviews, expert commentary, dedicated to IPO, as well as the activity of member companies on the website. Moreover, the information and educational materials on the mechanisms of the stock market, corporate governance principles, investment strategy and investment risks and the citizens’ participation in the “People’s IPO” program will be placed on the website.

Official accounts of the program have been opened in Twitter (https://twitter.com/halyk_ipo) and Facebook (www.facebook.com / halyk.ipo) for active Internet users.

The Kazakh government has developed the program of delivering shares of subsidiary and affiliates to the stock market under Kazakh President Nursultan Nazarbayev’s order.

The program covers the period up to 2015. It envisages a phased placement of the shares of the biggest and stable state companies on the stock market. “KazTransOil” company will first conduct IPO (the company’s shares will be proposed in September 2012). The shares of “KEGOC”, “Air Astana”, “Kazmortransflot”, “Samruk-Energo” and “KazTransGas” will be placed in IPO in 2013. “Kazakh Railway”, “Kaztemirtrans”, “Kazatomprom”, “KazMunayGas” will hold IPO in 2014-2015.

Source: http://en.trend.az/capital/business/2014068.html

Marcia Favale-Tarter: Kazakhstan «The People’s IPO» program will be implemented during the next 5 – 10 years.

«Launching the project «People’s IPO» will take Kazakhstan from 5 to 10 years. It is impossible to create Investment Funds Industry in one day. It is impossible in one day to explain the principles of financial investing. In comparison, only 4% of U.S. population actively invest in stock index funds» - she told the audience of Kazakhstan-US Investment Forum in New York.

According to her, the first phase of the program will be implemented by means of pension funds.

«If one have available funds, one can invest via brokerage companies in Kazakhstan. As an addition, we plan to ask «Kazpost» to use its system which will allow to cover more people, especially people in rural areas»,- said the Counselor.

Source: Informational and analytical portal of «SOVEREIGN WEALTH FUND «SAMRUK-KAZYNA» JSC

Kazakhstan postpones IPOs on volatile markets

ASTANA, March 13 (Reuters) – Kazakhstan has postponed plans to float shares in several state-run enterprises, including an oil transport company and its national grid, due to volatile global market conditions, economy minister Bakytzhan Sagintayev said on Tuesday.

The oil-producing Central Asian country had planned to launch the first phase of its “People’s IPO” in the second or third quarter of this year, part of a programme aimed at giving ordinary Kazakhs the chance to own shares in major companies.

Sagintayev told a government meeting the proposed listing of national grid company KEGOC would be postponed until next year. State oil transportation company KazTransOil could still be floated by the end of this year, the minister added.

“KazTransOil and KEGOC are ready to offer their shares to the public,” Sagintayev said.

“At the same time, due to unpredictable developments in the world economy, we suggest it would be expedient to carry out the KazTransOil IPO this year … and to postpone the KEGOC IPO until 2013.”

Kuandyk Bishimbayev, deputy head of sovereign wealth fund Samruk-Kazyna, told the same meeting that the KazTransOil listing was planned for October 2012.

The government plans to invigorate the small local stock market and to raise around $500 million from the first round of IPOs, which will see company stakes of 5-15 percent sold to retail investors and local pension funds.

The IPO programme envisages that the jewels in Kazakhstan’s crown – state oil and gas firm KazMunaiGas and uranium miner Kazatomprom – will go public after 2015, potentially raising billions of dollars via sales to local and foreign investors.

Kazakhstan is the second-largest oil producer in the former Soviet Union after Russia. It is also the world’s largest uranium producer and a major exporter of grain and industrial metals.

Kairat Kelimbetov, then economy minister and now a deputy prime minister, told Reuters last October that the share floats might be postponed if global markets remained volatile.

Source: Reuters