Air Astana Now Listed on LSE, AIX and KASE
Air Astana, Kazakhstan’s largest airline, has commenced its initial public offering (IPO) on the Astana International Exchange (AIX) on Feb. 15, marking a significant milestone in the country’s stock market. Following a successful three and a half days of conditional trading, the airline’s ordinary shares and global depositary receipts (GDRs) are now unconditionally traded on AIX.
The IPO saw an overwhelming response from Kazakh retail investors, with over 29,000 orders received, totaling more than 100 billion tenge (US$223.4 million). Retail investors accounted for half of the orders, indicating a growing capacity for retail investor participation in large-scale transactions.
AIX CEO Assel Mukazhanova emphasized the deepening of the Kazakh stock market and the increasing ability of retail investors to engage in major transactions. The IPO also signified a shift in dynamics between domestic and international markets, with the domestic order book surpassing its international counterpart for the first time.
The volume of orders for GDRs and shares on AIX reached $112 million and 49.6 billion tenge ($110.8 million), respectively. As a result, AIX investors received GDRs worth $71.6 million and shares totaling 15.6 billion tenge ($34.8 million), with retail investors accounting for 56% of the allocation.
Additionally, the solemn market open ceremony for common shares of Air Astana on Feb. 15 in Astana saw the execution of 36,283 orders for the purchase of 45,855,827 shares, totaling $108.9 million, representing 76% of the volume of common shares offered on the local market.
Air Astana’s initial public offering also included a local placement of GDRs and shares worth $215 million, with $106.1 million raised via AIX, making up 49.3% of the total amount. The company’s CEO Peter Foster highlighted its remarkable performance over its 22-year history, culminating in the decision to go public in order to raise funds for future projects, particularly infrastructure development.
The success of the IPO was lauded by British Ambassador to Kazakhstan Kathy Leach, who commended Air Astana’s development and success, labeling the IPO as a crucial step for the further expansion and growth of this world-class airline.
