Exclusive: Kazakhstan turns to international advisers on IPOs
The prime minister’s adviser reveals to Euromoney how the state is seeking more international banks for deals
International bank advisers are being sought for individual deals as Kazakhstan’s programme of People’s IPOs proceeds apace.
Such advice has been deemed necessary as the sales are unprecedented.
Initial stakes – of between 5% and 15% in state-owned companies – are being sold on the Kazakhstan Stock Exchange to domestic investors only, although later offerings might be open to foreigners. Banks are, therefore, not being selected yet on the basis of their ability to distribute internationally.
“International banks will lend their expertise in areas such as valuation, due diligence and ensuring international best practices,” says Marcia Favale-Tarter, an adviser to Kazakhstan prime minister Karim Massimov.
State holding company Samruk-Kazyna appointed UBS and Citi to advise on the overall programme in May, alongside local firms Visor Capital and KazKom Securities.
Halyk Finance, a unit of local bank Halyk, was appointed in August to advise on the specific IPO of Kegoc, the national grid company, according to another source involved in the programme. Samruk-Kazyna is now looking for an international bank adviser for Kegoc’s IPO.
State oil-transport company KazTransOil sent out a request for proposal to potential advisers on its proposed IPO in August. However, says the source, teething troubles have meant an adviser has not yet been appointed.
“International banks are being sought to advise on individual IPOs to make sure the People’s IPOs reach international standards from the very beginning,” says Favale-Tarter, a former banker.
She also advised on the restructuring of the Kazakh banking sector after the financial crisis.