People’s IPO Program is facing another postponement over a presidential decree signed 15 years ago that reportedly prohibited sales of state-owned infrastructure facilities, Kursiv.kz reports, citing Timur Turlov, Freedom Finance investment company Director.
Speaking at the Nur Otan party congress on February 11, 2011 President Nazarbayev instructed the Government to launch Initial Public Offerings (IPOs) of large-scaled government-owned companies 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.
“The Program has been suspended, partly because it contradicts the [overlooked] president’s decree signed in the late 1990ies that reportedly prohibited privatization of infrastructure companies. Both KazTransOil [oil shipping company] and KEGOC [national power grid operator] belong exactly to such kind of companies. The General Prosecutor’s Office has found the discrepancy. The legal contradictions are being settled”, Mr. Turlov said.
According to him, “public officials in charge of the Program have set the task of strengthening common people’s confidence in the national securities market. They have been seeking to make sure prospective buyers of shares to be floated are satisfied. It’s an extreme experience for the officials”.
December 25, 2012 KazTransOil floated over 38 million common shares as part of the People’s IPO Program. As a result, 33 989 Kazakhstan citizens and 10 pension funds became shareholders of the company.
KEGOK was supposed to have floated its shares in May 2013; however, the floating has been postponed.