Proactive Investors - Air Astana has set a pricing range of $8.5 to $11 per global depository receipt (GDR) for its upcoming initial public offering in London and Kazakhstan, equivalent to $2.13 to $2.75 per ordinary share.
The Kazakh flag carrier expects to raise gross proceeds of around $120 million (£94.5 million) in the IPO, resulting in a market capitalisation of between $770 million and $962 million.
The company intends to apply the proceeds of the offering “towards the growth of the business and ancillary activities, whilst maintaining a prudent level of liquidity and borrowings”, according to a Monday press release.
Alongside new shares issued by Air Astana, existing shares held by British defence firm BAE Systems (LON:BAES) and Kazakhstan’s sovereign wealth fund – the airline’s existing joint owners – will go up for sale on the premium segment of the London Stock Exchange.
BAE will net a substantial windfall from the sale, though it is unclear what percentage of its 49% stake in the airline BAE intends to dispose of.
Peter Foster, president and chief executive of the Air Astana Group, said the response to the offering and strong investor interest “have been very positive”.
“As one of the fast-growing airline groups, we firmly believe that Air Astana represents an attractive investment proposition, supported by strong financial and operational track record, significant growth opportunities, and an experienced, disciplined management team.
“We look forward to continuing our success while creating long-term value for our future shareholders."
The official commencement of trading on the LSE is anticipated on 14 February, with trading in Astana to follow shortly after.