Samruk-Kazyna plans to sell up to 20% of Kazakh railway operator KTZ shares in IPO

ALMATY. March 14 (Interfax) - Kazakhstan's Sovereign Wealth Fund Samruk-Kazyna intends to sell up to 20% of the shares of national railway operator Kazakhstan Temir Zholy (KTZ) through an initial public offering, Samruk-Kazyna CEO Nurlan Zhakupov said.

Speaking at a meeting of the Fund's Public Council on Friday, Zhakupov clarified the details of the expected sale. "We plan to sell up to 20% of the company's shares. The buyer of the shares will not own the railway network but only the acquired stake in the company KTZ, which owns not only the railway network but other assets as well," he said.

Zhakupov also highlighted the limitations on public communication ahead of the IPO, in line with international practices. "I would like to note that, following international standards, there are restrictions on extensive PR campaigns before an IPO. For this reason, we cannot disclose all the preparation details, but we have shared the main outline with you," he said.

Earlier reports in mid-December indicated that Samruk-Kazyna was considering selling between 10% and 25% of KTZ's total shares, depending on market conditions. The final parameters of the deal will be known at the final stages of the IPO, but the state fund intends to retain at least 75% of KTZ shares. The shares will likely be listed on the London Stock Exchange.

Kazakhstan Temir Zholy is a transport, warehousing and distribution company, which is part of Kazakhstan's National Wealth Fund Samruk-Kazyna. KTZ operates the country's railways, the infrastructure of seaports and airports, transportation and warehousing facilities.