Air Astana Sets IPO Price Range, Aims to Raise $120 Million
Air Astana to Commence Initial Public Offering in February
Air Astana, Kazakhstan’s premier airline, has confirmed its plans to conduct an initial public offering (IPO) in February, with the aim of raising $120 million.
The airline, which is 51% owned by the Samruk Kazyna Sovereign Wealth Fund and 49% by British BAE, announced that it intends to float in London, with a price range of $8.5 to $11 for one GDR consisting of core shares. This translates to a price range of $2.13 to $2.75 per share.
Air Astana is targeting a market valuation of between $770 million and $962 million, and the company’s top executives are currently in London for a roadshow to engage with potential investors.
The IPO will take place on three exchanges – the London Stock Exchange, the Astana International Exchange (AIX), and the Kazakhstan Stock Exchange (KASE). GDRs will be offered on the AIX and London, while ordinary shares will be available through the KASE.
The company’s Chief Financial Officer, Ibrahim Canliel, emphasized that the $120 million raised through the IPO will cater to the airline’s investment needs for its next stage of growth. In addition, both shareholders have committed to a lock-up period of 180 days after the transaction.
Canliel also highlighted that Air Astana has experienced strong financial performance, with the airline returning to profitability as early as 2021, despite the challenges brought on by the COVID-19 pandemic. The company reported a 20.5% increase in total revenue and other income in the first nine months of 2023, reaching $900.6 million compared to $747.2 million in the same period of 2022.
However, the IPO plans have faced delays due to geopolitical factors, including the impact of the COVID-19 pandemic and the war in Ukraine. Despite these challenges, Air Astana remains committed to its growth strategy, planning to increase its fleet from 49 to 80 aircraft by the end of 2028.
The unconditional dealings in GDRs are scheduled to commence on the London Stock Exchange on Feb. 14 and on the AIX and the KASE on Feb. 15.
The offering is generating significant interest both locally in Kazakhstan and internationally, with the company now focused on the next steps in its journey towards becoming a publicly traded entity.
