Air Astana Secures $120 Million Through Successful IPO on International Exchanges

Air Astana, Kazakhstan’s premier airline, has successfully raised USD 120 million for its fleet expansion and maintenance programs through a dual initial public offering (IPO) on the Astana International Exchange and the London Stock Exchange. This financial milestone, detailed in a recent company filing, underlines the airline’s strategic growth ambitions and operational enhancements.

The IPO was set at USD 9.50 per global depository receipt (GDR), translating to KZT 1,073.83 (approximately USD 2.39) per share. This pricing positions the company’s valuation between USD 350 to 370 million, culminating in a market capitalization of USD 847 million. Of the total funds raised, USD 120 million is allocated directly to Air Astana, with the remaining proceeds benefiting the current shareholders, including the Kazakh sovereign wealth fund Samruk Kazyna and BAe Systems, based in Warton.

Post-IPO, Samruk Kazyna will retain a 41% stake in Air Astana, while BAe Systems will hold 15.3%. This adjustment reflects a redistribution from their previous holdings, where Samruk Kazyna owned 51% and BAe Systems controlled 49%. BAe Systems also retains the option to further decrease its shareholding in the future.

Air Astana, alongside its budget subsidiary FlyArystan, boasts a combined fleet of 52 aircraft, as reported by ch-aviation fleets data. This fleet includes a variety of models, from Airbus A320 families to Boeing 767-300ERs and Embraer E190-E2s. The airline’s future fleet strategy aims to increase its total aircraft count to 80 within the next four years. By the end of 2028, Air Astana plans to integrate additional aircraft, including three Boeing 787-8s directly from Boeing, three B787-9s via Air Lease Corporation, sixteen A321neos, and twenty-two A320neo family jets. Concurrently, the airline intends to phase out its E190-E2s and B767-300Fs.

Despite a slight underperformance on the first day of trading in London, where GDRs traded at USD 9.08 in the early afternoon, the IPO marks a significant achievement for Air Astana. This financial infusion is poised to substantially support the airline’s fleet and operational growth, ensuring its competitive edge in the regional and global aviation markets.