Price range of Air Astana IPO will be $8.5-$11 for GDR and $2.13-$2.75 for shares

ASTANA. Jan 29 (Interfax) - Kazakh airline Air Astana has set the estimated price range for its upcoming IPO at $8.5-11 per global depositary receipt (GDR) and $2.13-2.75 per share, the carrier said.

The final price will be determined based on the bookbuilding results around February 9 and will be within this price range.

The company plans to raise around $120 million with the offering. "In that case the company's anticipated market capitalization would be between $770 million and $962 million," it said.

The final price in respect of the IPO will be determined following a bookbuilding process and is expected to be announced on or around February 9, 2024, which is the pricing date, the press release says.

The final offer price per GDR and share will be within the offer price range. The GDRs represent shares in the company with one GDR representing an interest in four shares. The final offer price per share will be set in tenge and will be equal to the final offer price per GDR divided by four, converted to Tenge at the National Bank of Kazakhstan official exchange rate effective on the date preceding the pricing date.

Air Astana will offer shares and GDRs for a total value of $300 million, said Ibrahim Canliel, Air Astana chief financial officer.

"As we said earlier, the offering will be made on three stock exchanges: London, Astana and KASE. The total amount will come to $300 million," Canliel said at a Monday briefing.

Air Astana expects to raise about $120 million, which will be invested in the company's growth projects, he said.

Samruk-Kazyna State Wealth Fund plans to sell at least 10% out of its of its 51% stake in the airline, said Dastan Adikhodzhaev, the fund's department director for privatization and asset restructuring.

"Samruk-Kazyna plans to lower its stake to below 41%," he said.

London Admission and unconditional dealings in the GDRs are expected to commence on the London Stock Exchange (LSE) February 14, 2024, unconditional dealings in the shares and GDRs on the Astana International Exchange (AIX) and in the shares on the Kazakhstan Stock Exchange (KASE) is expected to commence on or around February 15, 2024, the press release says.

Air Astana said earlier it expected to raise $120 mln in the IPO on LSE, AIX and KASE. The proceeds will be used to support the company's growth strategy and existing shares (or GDRs representing shares). The GDRs will be listed and admitted to trading on the London Stock Exchange (LSE) and the Astana International Exchange (AIX). The shares will be listed and admitted to trading on the AIX and the KASE, the airline said.

The company engaged Citigroup Global Markets Limited and Jefferies International Limited as the joint global coordinators and bookrunners and WOOD & Company Financial Services, a.s. as joint bookrunner. In relation to the domestic offer, the company engaged JSC Halyk Finance as joint bookrunner, Freedom Finance Global PLC as lead manager and JSC BCC-Invest, JSC SkyBridge Invest and JSC Jusan Invest as co-managers.

Air Astana is owned by the Kazakh government through National Wealth Fund Samruk-Kazyna (51%) and British BAE Systems Ltd. (49%). Air Astana wholly owns low-cost airline FlyArystan