Kazakhstan national carrier Air Astana can launch IPO in 2017-2018 to support the company’s growth plans, the airline’s president Peter Foster said at a press conference in Almaty, reports interfax.ru.
“We were pleased with the government’s recent statement that the shares of Air Astana will be available in the IPO market for public offering in about 18-24 months,” Peter Foster said, adding that “we expect that it will give a positive impetus for development of the Kazakhstan’s financial market, as well as will have a positive impact to the future development of the company”.
According to him, it is too early to talk about the IPO conditions and the size of the share. At the moment there is a road map developed by the company on which both shareholders are in principle agreed.
“Speaking of the shares package, I can say it will depend on the demand and on the potential of the financial market,” the airline’s president said. According to him with the IPO the shares of the two shareholders will be “blurred”.
Air Astana is a joint venture of the National Welfare Fund “Samruk-Kazyna” JSC and BAE Systems, 51% and 49% respectively. The airline currently serves around 40 international and 19 domestic destinations. Air Astana is planning to grow capacity by 4% in 2016, while growth of 10% is projected for 2017, this year will see a bigger spike as Air Astana gears up for its role of host airline for EXPO 2017, which will be held in Astana from January 10 to September 10, 2017.
Plans for initial public offering the Kazakhstan government initially planned for 2012, but back then the initiative had been postponed until market conditions were more favorable.
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