KEGOC might float stock this December

KEGOC might float its shares at the People’s IPO in Kazakhstan as early as December 2014, Tengrinews reports citing Deputy Chair of the Board of Samruk Kazyna national wealth fund Yelena Bakhmutova.

“The government generally supports Samruk Kazyna in its efforts to bring KEGOC to the stock exchange market. And after the needed legislative changes are made (…), the company's stock will be floated. We expect it to happen this December,” she said.

It is planned to place 10 percent minus one share of KEGOC during the People’s IPO. The final number of shares to the floated and the price will be determined based on target return.

The company's dividend policy provides for at least 40 percent of its net income to be paid in dividends on common stock.

“KEGOC is preparing for the People’s IPO in line with the best international practices, which implies high requirements towards the level of disclosure of information about the company,” Yelena Bakhmutova added.

KEGOC (Kazakhstan Electricity Grid Operating Company) expects to float its shares within the framework of People’s IPO Program in December 2014,

KEGOC - Kazakhstan Electricity Grid Operating Company - is the core operator of Kazakhstan’s nationwide electric power grid. The company's charter capital is 106.9 billion tenge ($712 million). And it is currently implementing projects of development of Kazakhstan’s national electric power grid worth 97 billion tenge ($647 million).

KEGOC shares are 100% owned by Samruk-Kazyna National Wealth Fund. The total number of common shares is 10,767,297. The nominal value of one share is 10,000 tenge ($67).

KEGOC is not the first Kazakhstan company to be floated as part of the People's IPO. KazTransOil was the first one to be floated in December 2012.

The government-run program of the People’s IPO in Kazakhstan was adopted in autumn 2011. Stock of leading national companies is offered for the IPO to citizens of Kazakhstan only. People can buy the shares at regional, city and village post offices of Kazpochta. 

The People’s IPO provides the people with an opportunity to buy shares of the country’s major enterprises and is viewed as a new tool for investing personal savings and a way to develop the country's stock exchange market. 

KazTransGas, Samruk-Energo, Kazakhstan Temir Zholy, KazTemirTrans, KazAtomProm and KazMunaiGas are also among the companies that are going to be floated as part of the People's IPO in Kazakhstan.

Reporting by Baubek Konyrov