According to the CEO of Kazakhstan Electricity Greed Operating Company (KEGOC) Nabi Aitzhanov, all money the company obtains through the secondary public offering (SPO) will be allocated for strengthening the southern zone of the United Power System (UPS).
«In order to strengthen the southern zone of the UPS, we need to build two new 500-kilowatt lines on the Chu-Jambyl-Shymkent route and to upgrade three electrical substations in Chu, Jambyl and Shymkent. This project is expected to start this year and will last until 2027. All funds we receive from the SPO will be allocated for the realization of this project,» he said during a press briefing.
If investors’ interest in the SPO is big enough, the company can raise about $47 million ($3.08 per 15 million shares).
As Aitzhanov noted, KEGOC is currently engaged in three big investment projects. The one is the reconstruction of 200- to 500-kilowatt overhead lines in the Aktobe, West and Sarybay intersystem power grids. This project is aimed at boosting the resilience of the existing power grid through its upgrade. This project is expected to be completed by the end of this year.
The second project involves strengthening the power grid in the western zone, which would require the construction of relevant infrastructure. Once this project is completed, it will increase the reliability of the power supply for consumers in the western zone of Kazakhstan, improve connectivity between 220-volt lines in the western regions of the country and boost the capacity of a power line between power stations in Uralsk and Mangystau. To make this happen, KEGOC needs to build 800 kilometers of 220-kilowatt lines, create a distribution substation in Karabatan and upgrade the five existing 220-kilowatt substations. This project is expected to be completed by the end of this year. The third project is the strengthening of the southern zone of the UPS.
KEGOC also plans to invest part of its net profit obtained earlier this year in the aforementioned projects. Also, the company is going to use part of its profit for dividend payouts. According to Aitzhanov, the company is predicted to obtain $65.4 million in net profit this year.
The power grid company is going to offer 15.3 million shares through subscription on KASE and AIX for $3.08 per common share. The current shareholders, who own 17 or more shares of KEGOС, will have a first option for purchasing the stock within 30 days after an announcement of the SPO (from September 28 through October 27). Investors can file their applications either with the help of brokers or directly to KEGOC.
New investors will be able to file applications from October 16 through November 2 via branch offices of Kazpost, the Tabys mobile app for investors, and similar apps by brokers and banks.
On September 18, KEGOC reported that it would increase the number of common shares by 15.3 million items. These additional shares amounted to 5.8% of 260 million of the company’s total shares.
The holding Samruk Kazyna controls 90% of these shares plus one, the Unified Accumulative Pension Fund owns 7.25% of the security and the remaining 2.75% of shares are controlled by minority holders.
During its IPO in 2014, KEGOC placed on KASE 10% of its shares minus one share or 25.9 million common shares for $1.05 per share.
