Kazakh carrier Air Astana to float in London in February (updated)

Air Astana JSC

19/01/2024 09:23

(Adds BAE statement in paragraph 7, background throughout)
       LONDON, Jan 19 (Reuters) - Kazakh carrier Air Astana
confirmed its plan to float in London, aiming to raise fresh
funds to help fuel its growth, and allowing its investors
Kazakhstan's sovereign wealth fund and British defence giant BAE
Systems  BAES.L  reduce their stakes. 
        Air Astana said in a statement on Friday it expected its
initial public offering of new shares and existing stock on the
London Stock Exchange and Kazakhstan's AIX market to go ahead in
February, in a boost for London's sluggish IPO market. 
        The airline said it would float at least 25% of its
share capital. It announced last week it was aiming to raise
about $120 million from the IPO.
  
        Air Astana flies 49 aircraft. It carried 7 million
passengers and posted operating profit of $149 million in 2022.
  
        The listing will be a windfall for BAE depending on how
much of its 49% stake it sells.
  
        BAE, whose main business is making fighter jets and
submarines, invested less than $10 million in 2001 to help fund
Air Astana's launch at a time when it was bidding to sell a
radar system to Kazakhstan.
  
        A BAE spokesperson said: "Air Astana is a thriving,
well-managed business and presents an attractive proposition to
the market."  
  
    London's market has struggled in recent years, hurt by
Britain's departure from the European Union, and companies
opting to list in the United States, where valuations are said
to be higher. 
        In 2023, there were just 23 issuers listing in London
according to data from E&Y, down 49% on the previous year.
  


 (Reporting by Sarah Young in London and Yadarisa Shabong in
Bengaluru; Editing by Sonia Cheema and Paul Sandle)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))