London Stock Exchange welcomes Kazatomprom to the main market
The joint stock company, National Atomic Company “Kazatomprom”, the world’s leading uranium producer, today celebrated its admission to London Stock Exchange's main market through trading on the International Order Book. The company achieved a market capitalisation of US$3.0billion on its first day of conditional trading through a dual listing on London Stock Exchange and Astana International Exchange.
This is an historic moment for both Kazatomprom and the Republic of Kazakhstan. The IPO is a core element of Kazakhstan's privatisation programme, a strategy which the Government of the Republic of Kazakhstan set out in 2015. The privatisation programme is designed to help build an efficient, global economy for the future of Kazakhstan and it is in line with the OECD recommendation to decrease share of government in GDP to 15%.
In addition to being in line with the Government's strategy for the Kazakhstan economy, the IPO will also bring significant benefits to Kazatomprom, by providing a stable base of long-term shareholders and giving it access to a wider range of capital raising options and future liquidity.
Kazatomprom itself was established in 1997. Since then, the company has undergone an unprecedented transformation, going from a small uranium miner to the world's #1 producer with 20% of total global uranium production. It benefits from the largest reserve base in the industry, with attributable uranium reserves of just under 300 ktU.
Kazatomprom is also one of the lowest cost producers in the world, consistently in the lowest quartile of the global uranium production cost curve. All its production is done using "In Situ Recovery" thanks to the unique geology of its reserves. This gives Kazatomprom a sustainable competitive advantage in terms of production cost and operational flexibility.
Kazatomprom has a market centric strategy focused on value over volume. The Group's mission is to sustainably develop its uranium deposits and their value chain components in order to create long-term value for all of its stakeholders.
Kazatomprom has a proven track-record as reliable supplier to the industry for the past 20 years and has established relationships with the majority of global consumers of civil uranium and high quality blue chip customer base across Asia, Europe and North America.
The Group occupies a leading position in an industry that it believes to be at the inflection point with attractive long-term fundamentals and significant barriers to entry.
Galymzhan Pirmatov, CEO of Kazatomprom, said;
"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 all 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 capitalise on the attractive long-term fundamentals of the uranium market. We look forward to sharing our success with all our shareholders."
Credit Suisse and J.P. Morgan are acting as Joint Global Coordinators and Joint Bookrunners in connection with the offering of GDRs on the London Stock Exchange; China International Capital Corporation, Halyk Finance and Mizuho International plc are acting as Joint Bookrunners; Numis Securities Limited is acting as a Co-Manager.