Kazatomprom IPO begins

Tuesday, 13 November 2018

Kazakh sovereign wealth fund Samruk-Kazyna has offered 38,903,491 shares including global depositary receipts, or GDRs, representing 15% of the Kazatomprom's share capital. Each GDR represents an interest in one share. The company this morning announced an offer price of USD11.60 per GDR and KZT4343.85 per common share. The total size of the offering on both exchanges is USD451.3 million, including an over-allotment option. The offering implies a market capitalisation of USD3 billion for the company.

Kazatomprom - the world’s largest producer of natural uranium in terms of production volumes - formally confirmed last month its intention to proceed with the initial public offering (IPO).

Unconditional trading in the GDRs on the LSE through the International Order Book regulated market segment is expected to begin on 16 November. The company said it expects unconditional trading in shares and conditional trading in GDRs to begin on the AIX stock exchange "on or about" 14 November with unconditional trading in GDRs expected to commence on the AIX on or about 19 November.

"The listing on the London Stock Exchange and Astana International Exchange represents a historic moment for Kazatomprom and the Republic of Kazakhstan," Kazatomprom CEO Galymzhan Pirmatov said. "I am delighted with the local and international investor interest in our offering and welcome our new shareholders." Pirmatov said the company represented a "unique opportunity" with the company "strongly positioned to capitalise on the attractive long-term fundamentals of the uranium market."

Samruk-Kazyna, which is itself wholly owned by the Government of Kazakhstan, will retain 85% of the company's share capital.