Air Astana, a subsidiary of Air Astana Joint Stock Company, plans to float its global depositary receipts (GDRs) and shares in Kazakhstan and internationally. The company set its IPO GDR price between $8.5 to $11 and its shares between $2.13 and $2.75, with one GDR equalling an interest in four shares. Reuters indicated that final pricing will probably happen around 9 February.
Air Astana sets pricing for its IPO
The IPO will offer shares or GDRs representing shares held by BAE Systems Limited (BAE) and Sovereign Wealth Fund Samruk-Kazyna (SK). The company will list these on the London Stock Exchange (LSE), Astana International Exchange (AIX), and Kazakhstan Stock Exchange (KASE).
Analysts believe this float is a much-needed boost for the LSE’s torpid IPO performance. Air Astana aims for a $770m to $962m market valuation and a $300m gain, which includes $120m raised by the company.
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Since Russian airspace was declared a no-go zone after the Ukraine invasion, central Asian airlines, such as Air Astana, raked in passenger numbers and consequent revenues. The air service’s group president and CEO, Peter Foster, summed up their approach:
As one of the fast-growing airline groups, we firmly believe that Air Astana represents an attractive investment proposition, supported by strong financial and operational track record, significant growth opportunities, and an experienced, disciplined management team. We look forward to continuing our success while creating long-term value for our future shareholders.
At present, Air Astana operates 49 aeroplanes and, to date, accommodates 7 million passengers. The company’s operating profit for 2002 was $149m.
