The future IPO of JSC NC KazMunayGas was discussed by representatives of Samruk-Kazyna JSC, the company itself, the stock market and experts during the first open online meeting at the Fund’s platform. The IPO of the country’s largest oil and gas company is planned this year. The offering will be on the KASE and AIX exchanges. All Kazakhstani investors are invited to participate in the IPO.  

One of the strategic and priority activities of the Samruk-Kazyna Fund is privatization of assets and, in particular, the IPO of the largest portfolio companies. 
“There are several IPO goals of the largest companies at once. This includes creation of a long-term market value of the Fund’s assets and portfolio companies, improvement of corporate governance standards and operational efficiency,  emergence of new sources of funding for the development of companies, replenishment of the National Fund of the Republic of Kazakhstan,” said Yernar Zhanadil, the Managing Director of Samruk-Kazyna. 

The shares will be offered in compliance with the requirements of national legislation, as well as the rules of exchanges. The final decision on the sale of shares, as well as the terms of the offering, will be made by the Board of Directors of the Fund and the Government of the Republic of Kazakhstan. The decision will be based on the recommendations of a consortium of consultants, a preliminary assessment of potential demand and market conditions. The price of shares, first of all, will depend on the structure of demand that will develop during the collection of the order book. 

“The allocation of shares will be carried out after the end of the collection of the application book based on the recommendations of investment banks and discussions between KMG and the selling shareholders. In the distribution, priority is planned to be given to retail investors, taking into account the balance of interests of all stakeholders. KMG and Samruk-Kazyna are interested in forming a high-quality, diversified investor base and are aimed at a long-term presence on the fast-growing Kazakhstan stock market,” said Dauren Karabayev, the Deputy CEO of KMG. 

Dauren Karabayev also said: “The official channels for buying shares of JSC NC KazMunayGas will be published later, so be careful and do not react to fraudsters’ advertising before the announcement on the official websites of the AIX and KASE exchanges, KMG and Samruk-Kazyna about the start of accepting applications and specifying authorized channels for their submission.”   

During the discussion, representatives of the Fund and experts focused on specific issues related to possible risks for a successful IPO. They include the current situation with the export of oil through the CPC pipeline. According to Dauren Karabayev, the company will take all necessary measures to minimize the negative consequences, and is also ready to reorient its transportation routes. 

Alternative routes such as Atyrau-Samara, routes to Alashankou and Aktau are now available for Kazmunaygas. 

JSC NC KazMunayGas is the largest national oil and gas company. Its consolidated assets by the end of 2021 amounted to USD31.6 billion. Oil and gas condensate production was at the level of 21.7 million tons, which is about 25% of all production in Kazakhstan. At the end of Q1 2022, the consolidated debt of the KMG Group amounted to USD8.3 billion, having almost halved over the past five years. EBITDA in Q1 2022 increased by 39.5% and amounted to USD 971 million.   

The focus on the extraction, processing, transportation and marketing of oil and petroleum products will be maintained, while the key focus will remain on exploration and production of hydrocarbons, providing the domestic market with petroleum products. This year, the KPI plant for the production of polypropylene will be launched. Preparations for implementation of projects for the production of polyethylene and butadiene are in progress. The company is committed and striving to the highest ESG standards and sustainable development.