LONDON, UK: Air Astana, Kazakhstan’s flag carrier, has confirmed its plans to go public in a dual listing on the London Stock Exchange (LSE) and the Astana International Exchange (AIX) in February 2024. The airline will also list its shares on the Kazakhstan Stock Exchange (KASE).
The initial public offering (IPO) will include both new and existing shares and global depositary receipts (GDRs), which represent four shares each. The company aims to raise about $120 million from the new shares to support its growth strategy, while its current shareholders, BAE Systems and the Kazakh sovereign wealth fund, will sell some of their stakes.
The IPO will result in a free float of at least 25% of the company’s share capital. BAE Systems will also grant an option to sell up to 15% more GDRs in case of strong demand.
The final offer price and the number of shares and GDRs to be sold will be determined after a book-building process. The company has hired Citigroup, Jefferies and WOOD & Company as the joint global coordinators and bookrunners for the international offer, and Halyk Finance, Freedom Finance and three other firms as the domestic offer managers.
The company, which operates both domestic and international flights, said it was confident in its prospects despite the challenges posed by the Covid-19 pandemic. It expects to benefit from the recovery of air travel demand and the growth of the Kazakh economy. The management roadshow will start on 29 January 2024.
Peter Foster, Air Astana Group President and CEO, commented: “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.”