November 16, 2018

Kazatomprom starts trading on London Stock Exchange

  • Kazatomprom raises $451.3 million, valuing the company at $3 billion
  • First international Central Asia privatization since 2006
  • IPO follows first ever €1.05 billion Eurobond, by the Republic of Kazakhstan listed on London Stock Exchange earlier this week
  • Underlines London Stock Exchange’s role as the most international exchange attracting global issuers to its markets

London Stock Exchange today welcomes Kazatomprom, a leading global uranium producer, to its Main Market. The company raised $451.3 million from the sale of global depositary receipts (GDRs) by the Kazakh sovereign wealth fund Samruk-Kazyna on London Stock Exchange’s International Order Book (IOB). The offer secured strong international investor support from the US, Asia and Europe, valuing the company at $3 billion.

To celebrate Kazatomprom’s listing and the start of unconditional trading, David Schwimmer, CEO, London Stock Exchange Group welcomed Galymzhan Pirmatov, CEO, Kazatomprom, and Jon Dudas, Chairman, Kazatomprom, to London Stock Exchange today to open trading in London.

Galymzhan Pirmatov, CEO, Kazatomprom:
"The listing on London Stock Exchange and Astana International Exchange represents a historic moment for Kazatomprom and the Republic of Kazakhstan. I am delighted with the local and international investor interest in our offering and welcome our new shareholders. They understand the unique opportunity Kazatomprom represents as the world's leading uranium producer, with the largest reserves and lowest quartile operating costs, which is strongly positioned to capitalize on the attractive long-term fundamentals of the uranium market. We look forward to sharing our success with all our shareholders."

David Schwimmer, CEO, London Stock Exchange Group:
"London Stock Exchange Group warmly congratulates Mr. Pirmatov and his team on Kazatomprom’s landmark listing. With 11 Kazakh companies listed on our markets, with a combined market capitalisation of $11.5 billion, LSEG is a strong funding partner to Kazakhstan offering access to an unrivalled pool of deep liquid international investor capital.”

Kazatomprom’s IPO follows the listing of a double tranche €1.05 billion Eurobond, the first ever euro-denominated bond issued by the Kazakh sovereign and admitted to London Stock Exchange on 12 November 2018. The two tranches raised €525 million each; the five-year tranche with a coupon of 1.55 per cent and the second an eight year tranche with a coupon of 2.375 per cent. The Eurobond was issued under the Republic of Kazakhstan’s €10 billion Medium Term Note (MTN) programme which is listed on London Stock Exchange. The transactions reinforce London Stock Exchange’s position as a leading venue for international debt issuance from both sovereign and corporate issuers.

Kazatomprom’s listing adds to a fast-growing community of CIS companies listed on London Stock Exchange, which have raised over $19 billion in equity and debt in London since 2015.

  • 11 Kazakh companies are listed on London Stock Exchange, with a combined market capitalisation of $11.5 billion
  • $34.8bn has been raised in debt by Kazakhstan-incorporated issuers in London
  • The €1.05 billion double tranche Eurobond transaction this week is the first ever euro-denominated bond issued by the Kazakh sovereign, drawn down from a €10 billion MTN programme listed in London in 2015
  • Total on-book turnover for IOB companies incorporated in the CIS region is $70 billion so far
    this year
  • Total on-book turnover for all companies on IOB is $83.4bn, up 12% year-on-year (for the January to October period)
  • Since 2015, privatisations on London Stock Exchange markets have raised a total of $13.7 billion

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