KUALA LUMPUR: Kazakhstan's flag carrier Air Astana is looking to raise US$120 million (RM568.25 million) through dual listing in the United Kingdom and Kazakhstan as it plans to amplify its growth domestically and globally.
The airline, which is 49 per cent held by BAE Systems (Kazakhstan) Ltd and 51 per cent-owned by Samruk-Kazyna National Welfare Fund JSC, plans to list on the London Stock Exchange (LSE), Astana International Exchange (AIX) and Kazakhstan Stock Exchange (KASE).
Air Astana Group president and chief executive officer, Peter Foster said the initial public offering (IPO) will accelerate the growth of the airline as it seeks to expand its route network, fleet and increase operational flexibility.
"Our intention to list in London and Kazakhstan demonstrates the strong foundations of the Air Astana Group and the exciting prospects to increase air travel across our key markets," Foster said the company's announcement on listing.
The listing offering would include the sale of shares and global depository receipts (GDRs) held by BAE Systems and Samruk-Kazyna as well as BAE Systems' overallotment option for up to 15 per cent of the global offer GDRs.
Air Astana said the final offer price as well as the maximum number of GDRs and shares to be sold in the offering would be determined via a bookbuild.
The carrier also said a roadshow is expected to be launched by January 2024.
It has engaged Citigroup Global Markets Limited and Jefferies International Limited as the joint global coordinators and bookrunners, and WOOD & Company Financial Services as a joint bookrunner.
For the domestic offer, Air Astana has appointed JSC Halyk Finance as joint bookrunner, Freedom Finance Global PLC as lead manager and JSC BCC-Invest, JSC SkyBridge Invest and JSC Jusan Invest as co-managers.
In the nine months ended Sept 30, 2023 Air Astana Group – comprising of Air Astana and its budget airline unit FlyArystan – recorded overall profit of US$72.4 million (RM342.86 million) from US$61 million (RM288.87 million) in the same period in 2022.
The group's operating profit soared to US$128.9 million (RM610.42 million) in the first nine months of 2023 from US$115.9 million (RM548.9 million) a year ago while total revenue stood at US$900.6 million (RM4.3 billion) from US$747.20 million (RM3.54 billion).
The total number of passengers that both Air Astana and FlyArystan carried from January to September 2023 rose by 12 per cent to six million from 5.4 million in the same period in 2022 with an average load factor of 84 per cent.
"The group has continued to perform well in 2023 despite the twin headwinds of high inflation and continued issues with the Pratt & Whitney 1100 engines on the Airbus neo (new engine option) fleet," Foster said in the financial result statement.
He added the group's Central Asian and Caucasus routes have benefited from the increased footprint of Air Astana and FlyArystan.
By September 2023, the group had added more frequency into its key destinations, including the United Kingdom, Turkey, India, Thailand, Uzbekistan, Georgia and the Gulf countries, and reinstated flights to China.
In January this year, Air Astana Group had expanded its fleet size to 50 aircraft following the arrival of its new Airbus A321neo.
Its current fleet comprises of 32 aircraft for Air Astana and 18 for FlyArystan.
The group plans to grow its fleet to 80 aircraft by end-2028.
