Kazakhstan Chamber of Commerce in the USA

KazCham



Kazakhstan plans IPOs for 43 large state firms in 2016-17 0

Posted on December 10, 2015 by KazCham

Reuters

Nov 18 Kazakhstan plans to sell stakes of at least 25 percent in 43 large state-owned companies via initial public offerings (IPOs) in 2016-17, the Samruk-Kazyna sovereign wealth fund said on Wednesday.

The government faces a plunge in revenues from oil, Kazakhstan’s main export. President Nursultan Nazarbayev told a government meeting on Wednesday he wanted Kazakh businessmen and companies to take part in the privatisations.

The stakes will be sold on the floor of the oil-rich nation’s financial centre being built in the capital Astana, the fund said.

The businesses to go public include oil and gas company KazMunaiGas, uranium company Kazatomprom, railway company Kazakhstan Temir Zholy and mining firm Tau-ken Samruk, it said.

Tau-ken Samruk has a 30 percent stake in Glencore-controlled zinc producer Kazzinc.

Offered for sale will also be stakes in electricity firms united in the fund’s division Samruk-Energo.

Samruk-Kazyna manages state-owned stakes in companies representing all major branches of Central Asia’s largest economy.

Two sources close to the government told Reuters this month the companies in which the state would sell stakes included miner Eurasian Resources Group (ERG), flagship carrier Air Astana and Kazakhtelecom.

The fund said that besides holding IPOs in the 43 large companies, it would privatise 182 “non-core assets” through auctions in the same period.

The total value of the capital of all the companies slated for sell-off is around 2.5 trillion tenge ($8.1 billion), the fund said.

Prime Minister of Kazakhstan launched “People’s IPO” Program 0

Posted on November 08, 2012 by KazCham

Gazeta, Oct 30, 2012

Kazakh Prime Minister Serik Akhmetov instructed local agencies actively involved in the work to promote “People’s IPO” new program of Kazakhstan.

“Today the program People’s IPO” is being launched. his decision was preceded by a preparatory, organizational, technical, financial work. A large set of issues with international experts, consultants, banks and financial institutions were discussed. A large number of people who use foreign experience were connected to this work, S. Akhmetov told.

The Prime Minister of Kazakhstan stressed that the “People’s IPO” is the first program of this kind in Kazakhstan, and its success will depend on how well it will be aware of the population.

“Kazakh people will have an opportunity to send their savings not only for the purchase of real estate, invest in deposits, but to invest in modern financial institutions.

According to this program, every citizen of Kazakhstan can buy shares of the national well-known international company “KazTransOil”. “I believe, it is necessary to promote widely this program among the people. Every citizen of Kazakhstan should receive comprehensive information for decision making. I would like to draw the attention of region’s Governors of Almaty and Astana to this work, S.Akhmetov concluded.

Banker Explains Opportunities of People’s IPO Plan 0

Posted on June 08, 2012 by KazCham
ALMATY – Popular interest in the People’s IPO programme is growing as plans are finalized to launch the first initial public offerings later this year.
The government has launched a major education campaign to educate the public in the fundamental rules of successfully investing in open stock markets.

Before investing in any IPO, officials are explaining to the people that individuals should take into account two pieces of advice. First, no one should acquire even the most attractive stock paid for with money taken as a loan, since investments in securities have a long-term character and high returns are not guaranteed on them. Second, no one should invest in securities with money that they need in their regular budgets for vital purposes such as accommodation, food, education, and medicine. Shares in IPOs should be bought with surplus income that can be invested for a long term, without expecting immediate profit.

“Our task is, on the one hand, to tell people about the advantages of investing in securities, and on the other, to explain the risks that people can face,” Chingiz Kanapyanov, the deputy chairman of the National Bank’s Committee on the Development of the Regional Financial Centre of Almaty (RFCA) told The Astana Times in an interview.

Why should anyone with a low income consider buying the shares of companies?

An important characteristic of the People’s IPO program is the state’s desire to protect common investors against market fluctuations and other risks. So only the securities of enterprises in which the state owns all the shares or a majority of them are put up for sale.

As a rule, the People’s IPO are held in favourable economic conditions, rather than during an economic downturn. In Kazakhstan, the IPO is scheduled to be held in the wake of economic growth. Our country has successfully overcome the global financial crisis. The International Monetary Fund (IMF) forecasts the growth of Kazakhstan’s Gross Domestic Product (GDP) in 2012 at about 6 percent. So there is every reason to expect that the shares of high liquidity state companies or of companies with state participation will grow. That in turn allows us to predict the growth of the market value of securities and dividends on the shares. Both trends favour the interests of investors in IPOs.

The People’s IPO offerings allow ordinary citizens to become shareholders or part-owners of large companies, and to lawfully be engaged in the redistribution of national wealth. This growth in the number of minority shareholders increases the transparency of companies and the level of corporate governance in them. Having acquired some skills of investing in less risky securities of quasi-state companies, IPO holders can start investing in other securities. It may be riskier, but potentially more lucrative.

What are the national objectives of the government in launching the People’s IPO?

First, the ownership of shares of successful companies gives citizens an opportunity to gain profits from their development and growth through the rise in the price of shares and through the payment of dividends.

Second, the People’s IPO contributes to the development of the national stock market. The programme provides citizens with the opportunity to purchase the shares of leading companies. This expands the range of investors. The increasing demand for shares then leads to the growth of their liquidity, which in turn have a positive impact on the stock market.

Third, the state-owned companies can invest the funds attracted through the People’s IPO in their further development, in the acquisition of assets and in modernization and the expansion of production.

Which companies’ securities are to be listed and when?

The first tier, which includes the shares of KazTransOil, will be put on the domestic market during the second half of this year, by the end of June.

The second group of securities will be offered to the public in 2013. It will include the stock of companies such as KEGOC, Air Astana, KazTransGas, Kazmortransflot, and Samruk-Energo.

The third group of IPOs will be those of Kazakhstan Temir Zholy and KazTemirTrans. Their securities will be sold on the stock market in 2014. KazMunaiGas and Kazatomprom will follow them as will Kazakhmys and ENRC.

What is the size of the package of the IPO offerings?

In general, from 5 percent to 15 percent of shares of state companies are planned to be offered under the People’s IPO to the general population and to pension funds. But the size of the stock of each company will be determined, on one hand, by the fact that the state should retain a controlling stake in these companies, and, on the other, that free floating of shares must be also provided. In other words they must provide the required number of securities to ensure liquidity and keep control.

What is the role of the public awareness campaign?

The primary objective of the People’s IPO public campaign is to raise public awareness of the programme and the Ministry of Economic Development and Trade and the Samruk-Kazyna Sovereign Wealth Fund are responsible for that.

Our Committee for the RFCA Development has worked to improve the overall financial literacy of the population. We organize on a regular basis presentations and we hold regional workshops with experts from Samruk-Kazyna and the Ministry of Economic Development and Trade. Articles and materials about the People’s IPO programme are published in the media and many TV and radio broadcasts are devoted to it. The most popular among them are The Alphabet of Capital and The Smart Play. Full information about the People’s IPO is available on www.fingramota.kz, www.profinance.kz, www.kase.kz, and www.halyk-ipo.kz.

Investment activity requires some training and understanding. We therefore recommend anyone who intends to participate as a private investor in the People’s IPO programme to begin preparing ahead of time. They need to get the basic knowledge to study the opportunities and the risks.

People’s IPO to be launched in September 2012 0

Posted on June 05, 2012 by KazCham

PM.KZ, May 25, 2012

The People’s IPO Program is aimed to provide citizens of Kazakhstan with an opportunity to hold shares of the leading national companies, make profit and participate in their development. The issues of floating the companies on the stock market were among the key topics for discussion at the 5th Astana Economic Forum held in Astana.

The People’s IPO Program was development by the Government on the instruction of President N. Nazarbayev and scheduled for 2012-2015.

“The People’s IPO Program will provide hundreds of Kazakhstanis with an opportunity to hold shares of the largest companies of the country and new investment instruments,” the President said at the 13th congress of “Nur Otan” Party.

The main idea of the People’s IPO Program is to attract people to participation in the local stock market proving them with an opportunity to buy shares of the national companies and ensuring equal access for all citizens.

The People’s IPO project is implemented in two main directions – preparation of people for investing in the shares and preparation of companies for the IPO.

The information campaign has a great positive impact on implementation of this project and promotes is successful realization. The network of Kazpost JSC will be used to embrace all people of the country. The network will render transfer, agent or brokerage services in all villages, towns and cities of the country.

Speaking at the 5th Astana Economic Forum, Deputy Chairman of “Samruk-Kazyna” Fund Kuandyk Bishimbayev said that the information campaign would be held in three stages: launch of the call-center and website, holding of lectures and seminars about the program and distribution of information about investors activity. All three stages are planned to be completed by August 2012.

The first companies will be floated in September 2012. This will be the shares of the national oil pipelines operator KazTransOil. Later, the shares of KEGOC, KazTransGaz, Samruk-Energo, Kazmortranslfot, Air Astana, Kazakhstan Temir Zholy, KazMunaiGaz and Kazatomprom will be available in KASE.

The People’s IPO will be based on several principles. Thus, the shares will be sold at Kazakhstan Stock Exchange. Only Kazakhstan citizens and local pension funds will have the right to buy shares within the People’s IPO. Primarily, minority stakes of not more than 15% will be placed at the market.

World leading specialists are involved in the work on the People’s IPO. They consult companies taking into consideration the global financial practices.

The People’s IPO Program is aimed to provide citizens of the country with an opportunity to make profit from development and growth of the national companies. This project will allow companies to invest gain profit in their further development, modernization and production expansion.

“People’s IPO” to create wealth, bolster capital markets 0

Posted on October 31, 2011 by Alex

The dual goal of the planned “people’s IPO” program is to create a wealth creation conduit for the Kazakh population and  to  bolster  the  development of domestic capital markets, Marcia Favale-Tarter, an investment banker and advisor to Kazakhstan’s Prime Minister Karim Masimov, told Bloomberg on the sidelines of the Kazakhstan Business Forum in London last week.

The “people’s IPO,” a privatization program in which the Kazakh government will sell stakes in some of the country’s largest companies to domestic investors, will help create an investment culture among the Kazakh population, improve corporate governance, and bolster the development of the country’s investment infrastructure, according to Favale-Tarter. Air Astana, KEGOC, and KazTransOil will headline the offerings, but “all companies underare being evaluated.”

SOURCE: SRI, Kazakhstan Daily News Brief, dated 24 October, 2011, available at http://silkroadintelligencer.com/wp-content/files/srikznewsbrief_oct24_2011.pdf

Kazakhstan Daily News Roundup – September 8, 2011 0

Posted on September 08, 2011 by Alex

HEADLINES:

Kazakhstan to shun Morgan Stanley, Goldman Sachs in “people’s IPO” program
(SRI) – The National Bank of Kazakhstan will not allow investment banks Morgan Stanley and Goldman Sachs to bid on advisory contracts as the Kazakh government is moving forward to select banks to manage the individual listings of the so-called “people’s IPO”, Bloomberg reported on Wednesday.

Karachaganak dispute could be solved within a month – Kulibayev
(SRI) – Timur Kulibayev, head of the state-owned holding and investment company Samruk-Kazyna, said on Wednesday the Karachaganak oil field dispute could be resolved within one month, the Kazakhstan-Novosti news agency reported.

BUSINESS AND ECONOMY:

Central bank to buy up entire Kazakh gold output until 2014-15 (SRI)

Kazakhstan to add BRIC currencies to diversify its foreign reserves (SRI)

Egypt buys Kazakh wheat at tender (SRI)

On the move: Atameken Union (SRI)

Real estate transactions jump 15.2% in August (SRI)

Outflow of speculative capital from Kazakhstan reached $3 billion this summer – central bank(SRI)

RESMI Group sells Respublika Pension Fund to a group of private investors (SRI)

Kazakhstan to boost railway equipment manufacturing to KZT300 billion by 2015 (SRI)

Indicators – September 7, 2011 (Reuters)

POLITICS:

Kulibayev reiterates intention to stay clear of politics (SRI)

Playing language issue as a political card unacceptable – Nur Otan (Interfax)

Majilis deputy Alzakov demands urgent measures to tackle religious extremism (Interfax)

REGIONAL:

Tethys loses bid for Afghan oil blocks to Chinese state-owned oil company (Proactive Investors)

Global Insider: South Korea-Central Asia relations (World Politics review)

SOURCE: http://silkroadintelligencer.com/2011/09/08/kazakhstan-daily-news-roundup-september-8-2011/

Public servants in Kazakhstan allowed participation in People’s IPO 0

Posted on September 06, 2011 by Alex

Trend, September 2011

There will be no collision of interests if public servants in Kazakhstan purchase shares of national companies to be floated within the People’s IPO, Kazakh Finance Minister Bolat Zhamishev said, Tengri News reported referring to Novosti-Kazakhstan.

Initial Public Offerings known as People’s IPO will be launched till the end of 2011 under the instruction of President Nursultan Nazarbayev. The program will enable citizens to purchase shares of the largest Kazakh national companies, giving them a new tool for investments and savings.

Initially public servants were prohibited to participate, but the ban has been lifted recently to stimulate the inactive Kazakh stock market.

“There will be no conflict of interest, as the shares will be offered to general public”, Minister Zhamishev told journalists on Friday.

The first wave of People’s IPO, which includes KEGOC national power grid operator and AirAstana airline, will be run in Q2-3, 2012. The second wave with shares of KazTransGas, KazMorTransFlot and Samruk-Energo is planned to be launched in 2013. And the third wave with KazakhtanTemirZholy National Railways Operator and KazTemirTrans will start in 2014-2015.

SOURCE: http://www.kazakhembus.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=771&cntnt01origid=15&cntnt01returnid=201

Archive for August 30th, 2011 0

Posted on August 30, 2011 by Alex

Zhaikmunai nearly doubles income in first half

By SRI ? August 30, 2011 ? Post a comment

(SRI) – Kazakhstan-focused oil company Zhaikmunai said on Monday its income almost doubled in the first half of 2011 to $36 million, up from $19.6 million in the same period last year.

(more…)

Kazakhstan to export 3 million tonnes of grains to China

By SRI ? August 30, 2011 ? Post a comment

(SRI) – Kazakhstan expects to export nearly 3 million tonnes of grains to China in 2011, head of the state-owned grain trader Food Contract Corporation said on Friday.

(more…)

“People’s IPOs” to expand Kazakh investment universe

By SRI ? August 30, 2011 ? Post a comment

(bne) – The range of publicly traded equities for Kazakhstan-focused funds to invest in has so far been limited mainly to the commodity and banking sectors. But the planned “People’s IPO” program is set to change that, ushering in an age of exchange-traded funds.

(more…)

SOURCE: http://silkroadintelligencer.com/2011/08/30/



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