Kazakhstani flag provider Air Astana plots $120m London market itemizing
- Air Astana hopes to lift $120m from going public in London and Kazakhstan
- BAE Systems and sovereign wealth fund Samruk-Kazyna will each promote shares
Kazakhstan’s flag provider Air Astana has unveiled plans for a London itemizing in a uncommon victory for the UK capital’s markets.
Air Astana hopes to lift $120million (£95million) by going public on the London Stock Exchange and Kazakhstan’s AIX market in efforts to assist fund its future growth.
The deal will contain BAE Systems, which owns a 49 per cent stake within the airline, and sovereign wealth fund Samruk-Kazyna promoting a few of their shares.
Taking off: Air Astana hopes to lift $120million by going public on the London Stock Exchange and Kazakhstan’s AIX market to assist fund its future growth
Founded in 2002 and headquartered in Almaty, Air Astana is the most important airline in Central Asia and the Caucasus area, working 50 plane on over 90 routes.
In the primary 9 months of final 12 months, the corporate flew about 6 million passengers on round 41,000 flights by way of its own-brand airline or low-cost subsidiary FlyArystan.
By the tip of 2028, Air Astana intends to spice up its fleet to 80 plane to enhance entry to main aviation markets like China, India and the Middle East.
The agency additionally desires to develop ancillary income by means of FlyArystan and capitalise on rising home enterprise journey inside Kazakhstan.
Peter Foster, its chief government and group president, stated: ‘As the most important airline group in Central Asia and the Caucasus, we’re assured that our business standing, market place and development profile current a compelling funding alternative.
‘This is a crucial milestone in our long-term technique, and we stay up for welcoming new Kazakh and worldwide traders as shareholders.’
Air Astana can be value an estimated £750million following the flotation, which is ready to occur someday in February.
The transfer would signify much-needed aid for London’s capital markets, given their struggles to draw preliminary public choices over the previous 12 months.
Just 23 IPOs occurred on the London Stock Exchange in 2023, down about half from the earlier 12 months, in response to EY.
Analysts have variously blamed this development on Britain’s departure from the European Union, greater capital swimming pools within the United States, and the UK’s stricter itemizing regime.
Plumbing merchandise agency Ferguson, constructing supplies provider CRH Holdings and gold mining operator AngloGold Ashanti have all just lately switched their major itemizing from London to New York.
Softbank additionally determined to listing semiconductor large ARM Holdings on Wall Street regardless of heavy lobbying by the UK Government, whereas soda ash producer WE Soda deserted a deliberate London IPO, citing ‘excessive investor warning’ within the UK.
Meanwhile, holidays group Tui is contemplating abandoning the LSE and placing its major itemizing on Frankfurt’s MDax market.
