Air Astana Sets Pricing for Global Depositary Receipts at $9.5 Each
BAE Systems-backed Air Astana has announced that the pricing for its global depositary receipts (GDRs) has been set at $9.5 each and 1,073.83 Kazakhstan tenge ($2.38) per share, suggesting a market capitalization of approximately $847 million. This comes as the central Asian airline prepares for its public offering on the London Stock Exchange.
Air Astana’s public offering includes the sale of shares and GDRs held by both BAE Systems (Kazakhstan) and the Kazakhstan sovereign wealth fund Samruk-Kazyna. Each GDR represents an interest in four shares in the company.
In anticipation of the public offering, Air Astana had previously projected a market capitalization ranging from $770 million to $962 million.
The public offering consists of a domestic offer and a global offer. The domestic offer includes the sale of 7.5 million GDRs by BAE Systems and 60.4 million shares sold by Air Astana and Samruk-Kazyna. The global offer, on the other hand, involves the sale of 14.2 million GDRs by BAE Systems. The offering is expected to yield gross proceeds of around $350 million to $370 million, with $120 million of that being raised by Air Astana to support its growth strategy.
Air Astana expects its shares to be admitted for trading on the London Stock Exchange on Wednesday. This marks a significant milestone for the company as it seeks to increase its global presence and capitalize on new opportunities in the aviation industry.
With the public offering, Air Astana is positioning itself for future growth and expansion. The funds raised will be used to support the company’s growth strategy, which includes increasing its fleet size, expanding its flight routes, and enhancing its customer experience.
Air Astana’s public offering of GDRs sets the stage for its entrance into the London Stock Exchange. The offering, which includes the sale of shares and GDRs held by BAE Systems and Samruk-Kazyna, is expected to generate significant proceeds and support the company’s growth strategy. With trading on the London Stock Exchange set to begin next week, Air Astana is poised for further expansion in the global aviation market.
Analyst comment
Positive news: Air Astana Sets Pricing for Global Depositary Receipts at $9.5 Each
As an analyst, I predict that the market will react positively to Air Astana’s public offering on the London Stock Exchange. The pricing of the global depositary receipts (GDRs) at $9.5 each suggests a market capitalization of approximately $847 million, which exceeds their previous projection. The offering, which includes the sale of shares and GDRs, is expected to generate significant proceeds and support the company’s growth strategy. With trading on the London Stock Exchange set to begin next week, Air Astana is poised for further expansion in the global aviation market.
