9th Feb 2024 13:49
(Alliance News) - Air Astana JSC on Friday announced the price for its "multiply oversubscribed" initial public offering in London and on two local exchanges in Kazakhstan.
The Almaty, Kazakhstan-based airline group operating in the Central Asia and the Caucasus region said the offer price was set at USD9.5 per global depositary receipt, within its previously announced range of USD8.50 to USD11.00. Each GDR represents four shares.
The GDR price calculates to KZT1,073.83 per share, about USD2.40 and within the company's previously posted range of KZT956 to KZT1,237.
This will give Air Astana a market capitalisation at the IPO price of USD847 million, within its previously announced range of USD770 million to USD996 million.
London-based aerospace firm BAE Systems PLC will sell 7.5 million GDRs in the domestic offering and 14.2 million in the global offering. It also is offering an over-allotment option for the global offer of 2.1 million GDRs.
The global offer is being managed by Citigroup Global Markets Ltd and Jefferies International Ltd as joint global coordinators and bookrunners and Wood & Co Financial Services AS as joint bookrunner.
The IPO will raise USD370 million, including the over-allotment option from BAE. Of this, USD120 million from the sale of new shares will go to Air Astana for growth initiatives, while the rest represent existing shares being sold by BAE and Sovereign Wealth Fund Samruk-Kazyna JSC.
BAE, via BAE Systems (Kazakhstan) Ltd, will retain a 15.3% stake in Air Astana, while SK will keep 41.0%.
Air Astana Chief Executive Officer Peter Foster said: "The strength of investor support reflects our profile as a profitable, high-growth airline group underpinned by compelling market dynamics. We have received strong interest both domestically and internationally, and this has resulted in a highly successful IPO multiple times oversubscribed.
"The triple listing on the London Stock Exchange, Kazakhstan Stock Exchange and Astana International Exchange has created the perfect platform to raise capital while allowing both local citizens and international investors to participate in our success story. This is the start of an exciting new phase for the Air Astana Group and we welcome all our new shareholders as we deliver our growth strategy."
The company operates a fleet of 50 aircraft, split between the Air Astana full-service brand and the FlyArystan budget carrier. Air Astana started flying in 2002 and FlyArystan in 2019.
Air Astana will list its GDRs on the London Main Market, while its GDRs and shares will be listed on the Astana International Exchange and its shares will have a premium listing on the Kazakhstan Stock Exchange.
Conditional dealings on the London Stock Exchange begin on Friday, while unconditional dealings start on Wednesday next week. The GDRs were quoted at USD9.08 in London on Friday.
BAE shares were up 0.8% at 1,205.00 pence.
By Tom Budszus, Alliance News slot editor; updated by Tom Waite, editor
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