No time left for KEGOC to run the IPO in 2013

Nov 07. Tengrinews

No time left for KEGOC to run the IPO in 2013There’s too little time left for Kazakhstan Electricity Grid Operating Company (KEGOC) to run an IPO in 2013, reports, citing Bakytzhan Kazhiyev, the Company’s Chairman of the Board, as saying.

“As it’s already mid-November, there’s too little time for the Company to run an IPO. Some documents prepared back in spring 2013 need to be updated (…) a respective President’s decree is needed (…) I guess we won’t make it this year”, Mr. Kazhiyev said.

According to him, the Company had cleared all the prep procedures and employed some consultancies to help prepare the IPO.

“It’s the privilege of the Government to decide on timing of the IPO (…) If there’s a decision, we will be able to float the Company’s shares within half a year”, he said.

Earlier the Government planned to have KazTransOil and KEGOC float their shares as part of the People’s IPO Program in 2012; however, in the autumn of 2012 only KazTransOil floated its shares. KEGOC’s IPO has been postponed to 2013.

Speaking at the Nur Otan party congress on February 11, 2011 President Nazarbayev instructed the Government to launch Initial Public Offerings (IPO) for common people before. The program is known as People’s IPO. According to President Nazarbayev, the IPO for the general public will enable citizens to purchase shares of the largest Kazakh companies, giving them a new tool for investments and savings.

December 25, 2012 KazTransOil floated over 38 million common shares as part of the People’s IPO Program. As a result, 33 989 Kazakhstan citizens and 10 pension funds became shareholders of the company.

KEGOC was supposed to have floated its shares in May 2013; however, the floating has been postponed.