Samruk-Kazyna directors green-light draft of ‘People’s IPO’ program

July 21. Interfax. ASTANA

Samruk-Kazyna directors green-light draft of 'People's IPO' programThe board of directors of the Kazakh national welfare fund Samruk-Kazyna approved at a Wednesday meeting a draft of a program for placing shares in fund subsidiaries and dependent companies on the stock market – the ‘People’s IPO’ program, the funds press service said in a statement.

This program was worked up taking into account the recommendations of a group of independent consultants who presented a report to the board of directors.

“The program envisions the gradual movement of fund companies to IPOs starting in 2012. Furthermore, the draft program contains proposals for improving the law. In line with these, it will be sent to the government of Kazakhstan for consideration,” the statement says.

At their meeting, the board of directors – under the chairmanship of Kazakh Prime Minister Karim Masimov – also took up issues of financial and economic activity, as well as a Samruk-Kazyna development strategy for the period until 2020.

The new approach to development strategy involves boosting the efficiency and competitiveness of the state fund’s companies with the introduction of principles of corporate guidance, the stimulation of innovation, and active investment policy.

The board preliminarily approved an annual financial report for 2010 and how the fund’s net revenues are to be distributed. There will be 9.1 billion tenge directed to the country’s budget in the form of dividends. Also, the fund’s companies put 71.6% billion tenge into the fulfillment of various obligations to the government last year, which in accordance with International Financial Reporting Standards (IFRS) is also recognized as distribution to a shareholder, i.e. the government.

The overall amount of state-fund dividends to its shareholder in 2010 will be 80.7 billion tenge, or 15% of profits, the statement says.

Samruk-Kazyna is a state holding company that owns and manages national companies in various sectors, including oil and gas, telecommunications, and transportation, as well as national development institutions. Such companies include rail-freightage monopoly Kazakhstan Temir Zholy; the country’s largest telecommunications company, Kazakhtelecom; the country’s biggest oil and gas producer, KazMunayGas; and the holding Eurasian Natural Resources Corporation. The fund also controls a number of the republic’s largest banks.