People's IPO kicks off today

    By Aidana Ussupova
    Kazakhstani residents are able to apply to participate in the People’s IPO starting today November 6, Chairman of Samruk-Kazyna National Welfare Fund Umirzak Shukeyev said at a recent government meeting.
    “The IPO terms comply with the effictive period of KazTransOil’s financial reports. The suggestion was to open the applications book on November 6, 2012. The book will close on December 5, 2012. Calculations will be made before December 14, 2012,” Shukeyev said.
    He said this requires three government decrees and a Road Show.
    According to a poll held among Kazakhstani residents, 34.4 percent of the adult population in the country is aware of the People’s IPO.
    7.3 percent of respondents talked of their intention to purchase shares. Based on this information, potential participation is estimated at 500 thousand persons.
    According to the chairman, retail investors are the priority target.
    They will be followed by applications fr om pension funds. The number of shares available for purchase by retail investors as part of the initial placement will have a lim it.
    Applications from retail investors will be limited to 7 million tenge ($47 thousand) per a person.
    Shukeyev said that 100 percent of KazTransOil after an 18 percent discount is worth 250 billion tenge ($1.7 billion). “Considering the suggested number and price per share, the maximum volume of placement could reach 28 billion tenge ($186 million),” the chairman said.
    The government issued 3 decrees for implementation of the People’s IPO project: On the placement of KazTransOil’s shares on the stock market, on amendments to the list of strategic facilities, and on the approval of the fund’s board decision, www.tengrinews.kz states.