Air Astana valued at $847m ahead of stock market launch

Kazakh carrier Air Astana has finalised the share offer price for its forthcoming stock market listings, giving an implied company valuation of $847m. Air Astana last month announced its intention for a long-planned IPO, detailing plans for listings on exchanges in London and Kazakhstan. It has now completed pricing for its initial offering, setting an offer price of KZ1,073.83 ($2.40) and of $9.50 per global depisotory receipts (GDR) – which represents four shares and conditional trading in which began today. Unconditional trading in Air Astana GDRs is expected to begin in London on 14 February and in Kazakhstan the day after. Air Astana Group chief executive Peter Foster says: ”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.” Air Astana expects the offering to generate gross proceeds of at least $350m and up to $370m if over-allotment options are fully exercised. Of this, $120m will be used by the company to support its growth strategy. Following the offering existing majority shareholder, Kazakhstan’s sovereign wealth fund Samruk-Kaznya, will fall from 51% to a 41% holding, while BAE Systems shareholding will fall from 49% to 15.3% if the over-allotment offer is fully exercised.<br/>