Kazakhstan residents will be able to submit the applications for participation in the People’s IPO starting from November 6, chairman of Samruk-Kazyna National Welfare Fund Umirzak Shukeyev said at a recent meeting of Kazakhstan Government.
“IPO terms comply with the efficiency period of the results of KazTransOil financial reports. The suggestion is to open the applications book on November 6, 2012. The book will be closed on December 5, 2012. The calculations will be made before December 14, 2012,” Shukeyev said.
According to him, this requires three government decrees and a kind of a Road Show which is an element of the practical preparation of the emitting company for placement of its securities.
According to the poll held among Kazakhstan residents, 34.4 percent of the adult population of the country is aware of the People’s IPO. 7.3 percent of the respondents talked about their intention to purchase the shares. Based on this information, the potential participation is estimated at 500 thousand people.
According to chairman of the Fund, retail investors - Kazakhstan citizens - are the priority target group. They will be followed by the applications from pension funds. The number of shares available for purchase by retail investors as part of the initial placement will not be limitless. Applications of retail investors will be limited to 7 million tenge ($47 thousand) per a person.
Shukeyev said that 100 percent of of KazTransOil after application of 18 percent discount is worth 250 billion tenge ($1.7 billion). “Considering the suggested number and price per share, the maximum volume of placement may reach 28 billion tenge ($186 million),” the chairman said.
The government issued 3 decrees for implementation of the People’s IPO project: On placement of KazTransOil shares on organized stock market, On amendments in the list of strategic facilities, On approval of the Fund’s board decision.
“Today we made a very important decision in Kazakhstan government, we are launching the People’s IPO program. You know that this decision was preceded by a major preparatory, organizational, technical and financial work. A big block of issues was solved with participation of the international experts, consultants, banks, financial institutes, i.e. this work involved a large number of people. This is the first such program for us. I think that its success will depend on activeness and promotion,” Kazakhstan Prime-Minister Serik Akhmetov said.
The price per one share was announced recently. The board of Samruk-Kazyna approved the volume of placement at 10% minus 1 share and set the price per one KazTransOil share at 725 tenge ($4.8).