KazTransOil to offer 40 million common shares within People’s IPO Program

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 reads, citing Kairgeldy Kabyldin, the Company’s Director General. The subscription will be announced late September. 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. Tengrinews.kz reported August 23, 2011 quoting Economic Development Minister Kelimbetov, that “the shares [of the national companies to be floated within the People's IPO] will be offered at market value (…) we’ve chosen the best timing: the companies are not overvalued at the present time”. According to the Minister, potential demand for the shares on the part of common people is estimated at $100-200 million. However, the demand may grow following the nation-wide campaign designed to raise financial awareness of the population at large. The Minister added that “on the part of accumulation pension funds, potential demand is estimated at $200-300 million with regards to the first wave of IPOs”. Late December 2011 Managing Director of Samruk-Kazyna Welfare Fund Peter Howes said that the price of one share in the People’s IPO would be affordable for common Kazakhstan citizens. “KazTransOil will be the first company to float its shares, with KEGOC National Power Grid Operator, Air Astana Airlines, KazMorTransFlot Maritime Fleet Operator, Samruk Energo Power Company and KazTransGas to follow the suit in 2013”, the press release reads. Plans are there to float stakes of Kazakhstan Temir Zholy Railways Operator, kazAtomProm Nuclear Company and KazMunaiGas O&G Company in 2014-2015.