On IPO Results and Opening of Secondary Trading in JSC NC KazMunayGas Shares
On December 8, 2022, KMG shares started trading at the Astana International Exchange, AIX and the Kazakhstan Stock Exchange (KASE). Prime Minister of Kazakhstan Alikhan Smailov took part in the official opening ceremony of stock trading.
At the end of the ceremony, a press briefing was held with the participation of the Chief Executive Officer of the Fund A. Satkaliyev, the Chief Executive Officer of KMG M. Mirzagaliyev, the Chief Executive Officer of Astana International Exchange (AIX) R. Bekturov, Chief Executive Officer of Halyk Bank of Kazakhstan, U. Shayakhmetova, the Chief Executive Officer of Freedom Holding Corp., T. Turlov.
It should be noted that on December 02, 2022, the subscription to KMG shares within the IPO ended. During the subscription, over 129 thousand applications were received from investors for a total amount of over KZT181 billion. Following the analysis of received applications, it was decided to satisfy applications for a total amount of over KZT153 billion. Thus, as part of this IPO, the Fund sold 18,303,584 ordinary shares of KMG, which is 3% of the total number of outstanding ordinary shares of KMG.
At the same time, applications of Kazakhstani citizens amounted to 48.5% for KZT74.6 billion, applications of Kazakhstani legal entities amounted to 47.2% for KZT 72.7 billion, applications of foreign individuals and legal entities amounted to 4.3% for KZT6.6 billion.
“In the history of the stock market of Kazakhstan, the initial public offering of KMG shares is the largest local IPO with listing only on Kazakhstan stock exchanges. The key to the success of this IPO was the large-scale work carried out by the Fund and KMG to prepare for it, the rapid development of digital technologies in the financial sector, which greatly facilitated the submission of applications by individuals, as well as the openness of the Fund and the Company to the investment community. I would also like to note that applications of Kazakhstani citizens were satisfied in full on a priority basis. The Fund and KMG will continue to work on the development of the Company and further improvement of corporate governance,” Almassadam Satkaliyev, CEO of the Fund, noted.
For the first time in Kazakhstan, a direct subscription tool was used – through the Tabys mobile application and through the Kazpost branches. For direct subscription, it was possible to apply for shares directly to the shareholder - the Fund. Through this, as well as mobile applications of individual second-tier banks and broker-dealer organizations, residents of those regions and remote settlements where there are no representatives of brokerage companies were able to participate in the IPO. About 6 thousand applications for KZT1,50 billion were submitted through direct subscription.
“For us, this is not only a new stage in the development of the Company, but also a great responsibility. Tens of thousands of Kazakhstanis, domestic and foreign investors have expressed their confidence in us and have become part of KazMunayGas. At the same time, I would like to note that by today’s placement on local exchanges, the Company has come out with stable and stable production and financial indicators, a balanced and versatile portfolio of assets, good international credit ratings. At the same time, in our future activities, we will continue to strive for even greater transparency and high standards of corporate governance and will make every effort to ensure that our company flourishes in the long term for the benefit of all shareholders,” Magzum Mirzagaliyev, the CEO of KMG, emphasized.
Umut Shayakhmetova, the CEO of Halyk Bank of Kazakhstan JSC, talked about the work of mobile applications of banks and the success of their application during the KMG IPO.
“First of all, I would like to note that the KazMunayGas IPO is a landmark moment for the domestic stock market. This is the largest local placement both in terms of amounts and the number of applications submitted. At the same time, more than half of the placed volume fell on the retail segment, the demand from which was fully satisfied. We are very pleased that about 90 thousand applications, that is, 70% of their total number, were sent through our Halyk Invest service in the Halyk Homebank application. If we look at the share of our bank’s customers in the context of the total number of people who used digital channels to participate in the KazMunayGas IPO, then 53% of all new retail investors of the Company became shareholders using our application. In general, this was the first digital IPO for the country, and the first large–scale experience in the retail brokerage segment for our bank. It seems to me that both Samruk-Kazyna JSC and we have successfully coped with the tasks set. Now we can say with certainty that Halyk has become a full-fledged and influential participant in the retail investment segment,” U. Shayakhmetova said.
It should be noted that applications for the purchase of shares received from citizens of the Republic of Kazakhstan were fully satisfied. At the same time, one of the coordinators and bookrunners of the transaction - Freedom Broker - collected applications for KZT90 billion during the subscription period, of which applications for KZT67 billion were satisfied.
“The current IPO of KazMunayGas was the first one after a long break and the largest in the domestic market of Kazakhstan in its history. It stirred up our stock market and contributed to a large influx of new retail investors. We have seen a lot of interest in the placement from our customers. This is evidenced by the figures: Freedom Broker collected applications for KZT90 billion during the subscription period, which is half of the total amount. Of these, applications for KZT67 billion were satisfied, which amounted to 44% of the total amount of satisfied applications. Historically, the commodity sector has always been attractive to investors. We also forecast interest in KazMunayGas securities on the secondary market from Kazakhstani and foreign investors,” Timur Turlov, the CEO of Freedom Holding Corp., informed.