Air Astana IPO Attracts Investment from EBRD and Kazakhstan’s Central Bank

Air Astana, the flag carrier of Kazakhstan, has successfully launched its initial public offering (IPO), drawing significant investments from the European Bank for Reconstruction and Development (EBRD) and the National Bank of the Republic of Kazakhstan. The EBRD has acquired a 5% stake in the airline with an investment of USD41.99 million, while Kazakhstan’s central bank has secured a 6.5% shareholding through an expenditure of KZT24.9 billion tenge (USD55.5 million).

The dual IPO, marking a major milestone for Air Astana, commenced trading this week across multiple exchanges in London, Astana, and Almaty. This strategic move is aimed at raising funds to support the airline’s ambitious plans, including fleet expansion and renewal to reach 80 aircraft by 2028, the construction of a new maintenance facility, and the acquisition of a flight simulator.

The EBRD highlighted the IPO as a landmark event for Kazakhstan’s economy, predominantly state-controlled, viewing the reduction of state ownership to less than 50% as a pivotal moment for the country and the broader Central Asian region. The bank’s participation is expected to enhance investor confidence and underscore its commitment to assisting Air Astana in achieving carbon neutrality by 2050 through the acquisition of next-generation aircraft.

Meanwhile, the investment by Kazakhstan’s central bank, managed by its Unified Accumulative Pension Fund (UAPF), underscores the national significance of this IPO and the carrier’s pivotal role in the Kazakh aviation sector.

The IPO includes shares and global depositary receipts (GDRs) listed on the London Stock Exchange (LSE), Astana International Exchange (AIX), and the Kazakhstan Stock Exchange (KASE) in Almaty, valuing the offering at USD350 million with Air Astana’s market capitalization reaching approximately USD850 million at the onset of trading.

This event represents a critical step in Air Astana’s growth strategy and Kazakhstan’s broader privatization efforts, signaling the airline’s promising future and the country’s commitment to economic diversification and global market integration.