Baku, Azerbaijan, April 10
By Elena Kosolapova - Trend:
Another company is planned to be included in Kazakhstan's stock market, in the framework of the National Initial Public Offering program in 2014.
"We plan to bring JSC Kazakhstan Electricity Grid Operating Company to the People`s IPO, at the end of the year, either in November or December, Financial Director and Member of the Board of Kazakh national welfare fund Samruk-Kazyna JSC , Nurlan Rakhmetov told Trend on April 10.
This is a government order, he said.
The customers will be offered some 10 percent minus one share of the company, Rakhmetov said.
The placement of shares of the previous participant of the program -Kaztransoil JSC was very successful for both the government and investors, according to Rakhmetov.
"The volume of proposals was 27.8 billion tenge, and the demand - 59.4 billion tenge. Herewith, the requests from physical entities, were 22.1 billion tenge. We expected that the requests from individuals will be received at 15 billion," Rakhmetov said.
He noted that the remaining part of the demand was formed by such financial institutions as pension funds.
Investment yields made up 23 percent in 2013, according to the Samruk-Kazyna representative.
"Dividend income amounted to 10.3 percent towards the placement price. Weighted average price of share 13 percent exceeded the placement price during 2013. Thus, not only people who bought these shares received dividends, but the price of the shares has increased," Rakhmetov said.
Sufficiently large growth of shares in general occurred in the stock exchange in January - February, 2014. And now the price of sold shares of Kaztransoil exceeds the placement price by 60 percent.
"The state, in turn, benefited from the fact that there was a powerful impetus to the development of the stock market and motivation was created for increasing financial literacy of the population, Rakhmetov said.
"[Thanks to the implementation of the National IPO program] in 2012, the number of brokerage accounts increased from 9,700 in January up to 52,300 in late December," he said.
The People's IPO is designated to allow citizens of Kazakhstan to become co-owners of the nation's largest companies. It is projected for 2012-2015.
It was planned to include KazTransOil, KEGOC, Air Astana, KazTransGas, Samruk-Energo, Kaztransmorflot, Kazahtan Temir Joly, Kaztemirtrans, Kazatomprom and KazMunaiGas in to stock market within the framework of the program.
However, the placement of shares of only KazTransO was held, the IPO of which took place in 2012.
According to the National Bank of Kazakhstan, the weighted average rate of tenge in January, 2014 was about 155 per dollar. As a result of the Februry devaluation of the tenge, it fell by nearly 20 percent. Average rate was 182.3 tenge/1$ in March.
Translated by S.I.
Edited by S.I.