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S. Zhumangarin: Large assets will be sold via IPO

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by January 18, 2018 General

During today’s press conference on the progress of privatization within the framework of the eighth direction of the Address Effective Public Administration, Deputy Minister of National Economy Serik Zhumangarin announced that the primary interest of investors is directed towards 47 large assets of the Samruk Kazyna fund. Depending on the decisions taken on the IPO strategy for these companies, the estimated revenue may range from 3.5 billion USD to 5.5 billion USD.

The primary interest of investors is directed towards 47 large assets of the Samruk Kazyna fund. Assets to be sold via IPO are: Kazakhstan Temir Zholy, KazMunayGas, joint-stock companies, national companies, Kazatomprom, Samruk-Energy, Air Astana, Kazpost, and Tau-Ken Samruk. Depending on the decisions taken on the IPO strategy for these companies, the estimated revenues may range from 3.5 billion USD to 5.5 billion USD, which is a fairly large amount, � S. Zhumangarin said.

He also specified the number of companies put up for sale in the following industries: oil and gas � 10, railway � 11, nuclear � 4, energy � 8, civil aviation (aside from Air Astana) � another 4, other industries � 5 companies. According to him, as of this moment the assets are in the process of preparation for sale.

All assets, the so called Top 65, are being prepared with the help of foreign consultants, which recommend the procedure, form of sale, whether it be IPO or direct targeted sale to a strategic investor, and all of this is being considered within the State Commission on Economic Modernization, � the Deputy Minister explained.

In turn, Deputy Minister of Finance Berik Sholpankulov added that all of the sold assets go off above the estimated value.

Source: Government of the Republic of Kazakhstan

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