British BAE Systems increases its stake in Air Astana

British company BAE Systems increased its stake in Air Astana, a national airline in Kazakhstan, from 15.3% to 16.95% (+1.65%). Shares of two other shareholders CITIBANK and the Unified Accumulative Pension Fund (UAPF), have also slightly changed, according to the Kazakhstan Stock Exchange (KASE).

Over the period from February 19 to April 1, the share of the UAPF in Air Astana increased from 6.5% to 6.51% and the nominal holder of CITIBANK now owns 24.61% of the shares instead of the previous 26.76%. The share of the Samruk Kazyna fund hasn’t changed since February, though. In mid-February, the media reported that the European Bank for Reconstruction and Development (EBRD) bought a 5% stake in Air Astana, although neither the airline nor KASE reported the transaction.

In February 2024, Air Astana went public, an anticipated move since 2011. Before the IPO, there were two shareholders in Air Astana: Samruk Kazyna (51%) and BAE Systems (49%).

During its IPO, Air Astana raised $121.1 million, while the offering was about $370 million (if the option for additional placement is fully exercised). Even though the offer price was set at $2.39 per share, it rose to $2.67 on the first day and began gradually declining. Currently, Air Astana shares are traded on KASE and AIX, while depositary receipts are available on AIX and the London Stock Exchange (LSE).

The airline’s stock value continues to decline on KASE. On April 12, the stock price slipped to $2.09 and is traded at $2.05 as of today. Since the start of the IPO, Air Astana’s share price has fallen by 23.3% on KASE and by 19.4% in AIX (from $2.62 to $2.11 per share). However, Freedom Broker analysts believe that buying the company’s shares now is a good idea as they expect the stock value to increase by 51% to $3.57 per share and $14.10 per GDR). In 2023, Air Astana reported a 21.5% increase in net profit, reaching $68.7 million.

On April 15, Air Astana and Italian Neos agreed to set up a strategic partnership. The two sides are even intending to launch a joint venture for air travel between Italy and Kazakhstan. Moreover, Air Astana and Neos have signed a code sharing agreement and agreed to exchange technical and operational expertise.

In January 2024, Lupo Rattazzi, the head of the Neos airline met with President Kassym-Jomart Tokayev. During this meeting, Rattazzi announced that Neos was interested in launching direct flights between Kazakhstan and Italy, namely between Astana and Rome and Astana and Milan.