Samruk-Kazyna JSC announces the work begun on the alienation of a package of ordinary shares and global depositary receipts of NAC Kazatomprom JSC as part of the implementation of the Comprehensive Privatization Plan for 2016-2020 approved by the Government of the Republic of Kazakhstan in accordance with, which it was decided to implement Alienation of up to 25% of the Company's share capital that began in 2018.

Taking into account current market conditions, as well as the positive dynamics of the value of KAP shares, the Fund decided to complete the order of the Government of the Republic of Kazakhstan and to propose the sale of up to 6.28% of the shares (in the form of Shares and GDRs) at the London Stock Exchange (LSE) and exchanges of the International Financial Center Astana (AIX).

In accordance with the general world practice of such placements of large blocks of shares, the Fund announced the invitation of international and domestic institutional investors to participate in an accelerated subscription (accelerated book-building) for the Shares and GDRs of the Company after the close of trading on the LSE on June 2, 2020.

The accelerated subscription method is often used in international practice in cases of an additional offer of packages of securities that are already in free circulation and are traded on international stock exchanges in order to prevent various manipulations in the trading of such securities and a sharp reduction in the price of them. Given the fact that the time for collecting applications for the LSE was a non-working time on the territory of the Kazakhstan Republic, upon completion of the collection of applications from international institutional investors, the Fund expects to continue collecting applications for subscribing to shares and GDRs of the company on AIX for institutional investors, June 3 from 09:00 until 11:30.

Based on the results of applications submitted by institutional investors, a book has been compiled on the following conditions: The volume of applications submitted amounts to $ 460 million, of which $ 206 million has been satisfied. The volume of applications from institutional investors exceeded the offer by 2.2. Times.

A total of applications worth 69.7 million US dollars were received at the AIFC exchange site, including 53.4% ​​from Kazakhstan’s and 46.6% from foreign investors.

As a result, the offering price for international and Kazakhstani institutional investors was adopted at $ 13 per GDR or KZT 5,230.81 per share.

At the same time, the Fund allocated a separate tranche for subscribing to the shares and GDRs of the Company on AIX for retail investors who are citizens of the Kazakhstan Republic at a price similar to the placement price for institutional investors.

The tranche offered to retail investors will amount to approximately 385,000 shares (in the form of shares and GDRs) or about $ 5 million, which corresponds to the average retail demand in similar transactions on the secondary public offering of securities on AIX last year.

Applications for Kazakhstan’s retail investors will be collected from 14:00 on June 3 to 16:00 on June 8. Applications from retailers can be filed through specialized brokerage and dealer organizations that are AIX trading members. Thus, citizens of the Kazakhstan Republic who wish to participate in the placement will have sufficient time to open a brokerage account, replenish it with money and provide their broker with an order to purchase the shares or GDRs of the Company.

Taking into account the current macroeconomic situation, the placement of shares of the Company at a price of US $ 13 per GDR (similar to the price of the transaction carried out in September’19) meets the criteria for the success of the transaction

Moreover, taking into account that the price of the company’s shares at the close of trading was $ 13.9 per US the offer at a price of $ 13.00 was formed taking into account a discount of 6% and is due to current market conditions and the demand of investors on the stock exchanges.

Placing up to 6.28% of the block of shares of the company, the Fund plans to complete the task of privatizing up to 25% of Kazatomprom JSC.