Thursday, August 16, 2012 -
State-owned Kazakh oil transportation firm KazTransGaz will offer 40 million shares of its company in the ‘People’s IPO’ program designed to give shareholders a stake in government-operated firms, KazTransGaz CEO Kairgeldy Kabyldin said Thursday.
Shares are expected to be put up for sale in autumn of this year. Initial projections by Kazakh authorities envisioned the launch of the ‘People’s IPO’ program in mid-2012.
Eighty percent of all oil transported in Kazakhstan is undertaken by KazTransOil.
Sovereign welfare fund Samruk-Kazyna owns all state-owned enterprises, and with it 80 percent of the Kazakh economy. Ownership of Kazakh national firms Kazakhmys, Kazatomprom, and KazMunaiGas means Samruk-Kazyna holds $70 billion in assets.
The shares to be available for purchase account for approximately 10 percent of the company, Kabyldin said.
KazTransGaz will be part of the ‘first issue’ of the ‘People’s IPO,’ and state firms such as KazTransOil, the Kazakhstan Electric Grid Operating Company (KEGOC), and flag carrier Air Astana will also offer shares during this time.
The ‘second issue’ of shares – expected to be issued in 2013 – will include KazTransGaz, Samruk-Energo, and Kazmortransflot National Maritime Shipping Company.
Though foreign investors will ultimately be permitted to invest in Kazakh state-owned firms, shares will initially only be offered to Kazakh citizens.