Kazakhstan, Astana, Nov. 29 /Trend K.Konirova/
Kazakhstan will not sell shares of national companies under The People's IPO program to foreigners, Minister of Economic Development and Trade Kairat Kelimbetov said while presenting a bill on implementation of The People's IPO on Tuesday.
"Amendments are made in the law On securities market to prohibit an issuer with a control share package directly or indirectly belonging to the national management of the holding company, sell shares to foreign nationals and / or legal entities and stateless persons," Kelimbetov said.
Kelimbetov noted this limitation applies only to the initial public offering and only under the People's IPO and will not have negative impact on the investment image of Kazakhstan.
"In addition, in accordance with the current version of the Law On Joint Stock Companies, outstanding number of common shares in public company should be no less than thirty percent, and each shareholder must own no more than five percent of common shares," Kelimbetov said.
The main purpose of this bill is to establish a legal framework to launch The People's IPO program, as well as to improve the efficiency and transparency of the largest companies in Kazakhstan, and to promote development of the domestic stock market.
According to Kelimbetov, the bill provides amendments and supplements to the Code "On Administrative Offences" and six laws of Kazakhstan ("On transport in the Republic of Kazakhstan", "On the rail," "On Joint Stock Companies", "On securities market" "On the National Welfare Fund", "On Subsoil and Subsoil Use").