Air Astana Plans Dual Listing with 1Q 2024 IPO

Air Astana (KC, Astana Nursultan Nazarbayev) is reportedly gearing up for its long-awaited Initial Public Offering (IPO) on the London Stock Exchange (LSE) and the Kazakhstan Stock Exchange (KaSE) in the first quarter of 2024. The airline has engaged advisors for both local and international markets as it moves forward with its IPO plans, aiming to list its shares on both exchanges.

The Kazakh flag carrier plans to offer a combination of existing shares held by its two owners, sovereign wealth fund Samruk Kazyna (51% stake) and BAe Systems (49% stake), along with new shares. Approximately 50% of the current shareholding held by the two shareholders will be offered for sale. Notably, both existing shareholders intend to retain a stake in the company, ensuring that the majority of Air Astana’s shares remain in the hands of Kazakh nationals or companies.

Sources suggest that the IPO could value Air Astana at up to USD1 billion. The airline had previously considered an IPO nearly a decade ago, with initial plans targeting 2016. Subsequent attempts were made in 2019 and 2020, but the COVID-19 pandemic disrupted the timeline.

Advisors appointed by Air Astana for the IPO include Citigroup, Jefferies Financial Group, Wood & Co., Halyk Finance, BCC Invest, Jusan Invest, and Skybridge Invest.

Qazaq Air (IQ, Astana Nursultan Nazarbayev), another airline wholly owned by Samruk Kazyna, is also expected to undergo privatization, with a strategic investment being the more likely route compared to an IPO. Air Astana was not immediately available for comment.