KazTransOil Director General on his Company’s readiness for People’s IPO

KazTransOil Director General told about the Company’s readiness for the IPO in a recent Professional Talk program on the local STV channel. Notably, he confirmed that the Company had completed the pre-IPO due diligence. He briefed on the Company’s financial performance from 2009 to 2011: the profit grew by $66.7 million. Back in 2009 the indicator stood at $100 million, whereas in 2011 it hit $166 million. According to Mr. Kabyldin, the Company enjoys wide growth opportunities related to growing oil shipments volumes. The pipelines owned by the Company total 7 500 km. For the recent 15 years the oil shipment capacities have grown fourfold and the Company is responsible for transportation of 60% of all the crude produced in Kazakhstan. Mid-August Tengrinews.kz reported that KazTransOil, the first company to offer its shares within the People’s IPO Program, plans to offer 40 million of its common shares. “We can’t set a certain price so far; the price will be announced following a respective governmental decree and Samruk Kazyna Sovereign Wealth Fund (the major shareholder). We have announced an additional issue of 40 million common shares to be offered for sale. It makes up 10% of all the common stock”, the company’s statement read at that time, citing Kairgeldy Kabyldin, the Company’s Director General. Speaking at the Nur Otan party congress on February 11, 2011 President Nazarbayev instructed the Government to launch Initial Public Offerings (IPO) for common people. The program is known as People’s IPO. According to President Nazarbayev, the IPO for the general public will enable citizens to purchase shares of the largest Kazakh companies, giving them a new tool for investments and savings. October 9, 2012 KazTag Agency reported, citing an unidentified source close to the government that the IPO of KazTransOil would be postponed to November. “The subscription was supposed to start October 1. However, given the recent change of the Government the plan has been postponed (…) The IPO is likely to be postponed to November. I don’t exclude that it will take place in January or February 2013”, the source said.