Freedom Finance Global to streamline Kazakhstani investors’ early access to Air Astana stock

Freedom Finance Global is going to provide investors an opportunity to acquire stocks and global depository receipts (GDR) of Air Astana on the AIX and London Stock Exchange (LSE) before the start of the standard trading session scheduled on February 15, according to a press release by the AIX.

Premarket trading with the airline’s common shares nominated in USD will exclusively happen on the AIX; premarket trading with GDR will occur on the AIX and LSE on February 9 at 2:00 p.m. Astana time (8:00 a.m. London time). Freedom Broker is the market maker of the trading on the AIX.

According to Chair of the AIX board Assel Mukazhanova, thanks to Freedom Broker Kazakhstani investors have an opportunity to participate in pre-market trading. This is the first such case in Kazakhstan. In turn, AIX is integrating the domestic and foreign markets through double listing of the stock and GDR. This measure is going to streamline the trading activities.

Commenting on the news, Chair of the Board of Freedom Finance Global Sergey Lukyanov said,

“Currently, we are observing that our clients and newcomers who are just considering their first investments have a huge interest in Air Astana stocks. I mean, the demand for the stock is really big. Because we have the expertise and necessary technologies, we were happy to support the initiative by AIX and take on the role of the market maker for premarket trading. As a result of our cooperation with AIX, Kazakhstani investors will get the opportunity to take part in trading on equal conditions with foreign investors; they will have a chance to satisfy their demand for the airline’s stocks. In this case, the procedure of each transaction is going to be standard. To buy the stock, investors need to place an order via their broker. I think that by introducing best practices common in foreign markets, we can promote the development of the local stock market and expand opportunities for Kazakhstani investors.”

Air Astana has been preparing for an IPO since 2011. Even though in 2018, the Samruk Kazyna holding said that the airline was ready for an initial offering, an IPO was rescheduled once again. In January 2024, the company announced its intention to offer its stock on three different exchanges simultaneously: KASE and AIX in Kazakhstan and the LSE in the U.K.

On February 6, 2024, the airline revealed its financial results for the first nine months of 2023. During this period the company reported $900.6 million in revenue, which is a record-high increase of 20.5% The company’s net profit grew by 18.7% year-on-year, reaching $72.40 million. During the IPO Air Astana plans to place $300 million worth of shares. This sum includes shares of two current shareholders – Samruk Kazyna (51%) and British BAE Systems (49%) and the new issuing in the amount of $120 million.

The company is going to use funds it will raise from selling its shares and GDRs for further development of its business. For instance, Air Astana wants to create a stock of spare parts, expand its technical maintenance network and overhaul its current aircraft.