JUNE 2013 - FEAS
JUNE 2013 - FEAS
JUNE 2013 - FEAS
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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT <strong>JUNE</strong> <strong>2013</strong><br />
KAZAKHSTAN STOCK EXCHANGE<br />
HISTORY AND DEVELOPMENT<br />
One of the major events last year was the<br />
first IPO that took place in the framework of<br />
the “People’s IPO”. This initiative is aimed to<br />
privatization through IPOs on KASE of 5-15%<br />
of the first rate companies that belong to the<br />
“Sovereign Wealth Fund “Samruk-Kazyna”.<br />
Among companies considered for IPOs<br />
are national conglomerates with a proven<br />
track record of progress and stability. As<br />
one of the major participants of this project<br />
implementation KASE prioritized its mediumand<br />
long-term plans to successfully support and<br />
implementation of these IPOs.<br />
Thanks to the efforts of all program participants,<br />
the first People’s IPO of KazTransOil (oil<br />
transportation and pipelines company) took<br />
place in November 2012. The order book was<br />
open on November 6, 2012 for one month.<br />
More than 34 000 individuals and 10 pension<br />
funds subscribed. The demand was more than<br />
two times higher than supply and amounted to<br />
59.4 billion Tenge (ca. 400 m US$). Individuals<br />
invested in the amount of 22 billion Tenge (147<br />
million US$).<br />
Right after the KazTransOil IPO a private mobile<br />
connection provider KCell had an IPO on<br />
KASE with a dual listing on LSEG. Placement<br />
of the ordinary shares of KCell on KASE via<br />
subscription and special trades attracted 7.5<br />
billion Tenge (50 million US$) totaling to 9.44%<br />
of the total issue.<br />
Another significant event was successful<br />
placement of the Islamic securities on KASE<br />
implemented in August, 2012 by Kazakhstan<br />
Development Bank “Sukuk Al-Mubarakha” for<br />
the amount of 240 m Malaysian Ringgits (ca.<br />
77.7 m US$) with the annual interest rate of<br />
5.50% within 5 years of maturity period. 62%<br />
of the issue was distributed among Malaysian<br />
investors and 38% was offered to Kazakhstani<br />
investors on KASE.<br />
Within the framework of <strong>FEAS</strong> bi-lateral<br />
exchange program KASE had an opportunity to<br />
visit Bulgarian Stock Exchange in February 2012<br />
and thanks to the hospitality of the Bulgarian<br />
colleagues get acquainted with the stock<br />
exchange operations and the current status<br />
of Bulgarian financial market. In addition, in<br />
2012 KASE continued its cooperation with the<br />
Organization for Economic Cooperation and<br />
Development (OECD) on corporate governance<br />
improvement in Eurasian capital markets.<br />
Finally, KASE signed a contract with Wiener<br />
Boerse AG aimed at calculation and promotion<br />
of KASE indexes. A tradable index KTX Local<br />
was launched on January 29, <strong>2013</strong> with the<br />
following most liquid shares selected by<br />
considering the monthly trading value and the<br />
number of active trading days:<br />
Company<br />
Weighting<br />
ENRC 20.18%<br />
KAZMUNAIGAS EP 19.82%<br />
KAZAKHMYS 19.52%<br />
HALYK SAVINGS BANK 14.05%<br />
KCELL 12.31%<br />
KAZTRANSOIL 6.56%<br />
KAZAKHTELECOM 6.04%<br />
KAZKOMMERTSBANK 1.52%<br />
FUTURE OUTLOOK<br />
Following successful implementation of some<br />
of the major projects in 2012, during <strong>2013</strong> KASE<br />
is planning to fulfill the remaining projects that<br />
were planned in the framework of 2011-<strong>2013</strong><br />
Development Strategy of the stock exchange.<br />
One of the important projects planned for <strong>2013</strong><br />
is full membership at the World Federation<br />
of Exchanges. KASE has already submitted<br />
the letter of intent, which was reviewed by<br />
WFE Board of Directors, and is preparing<br />
for successful implementation of the WFE<br />
accession procedure.<br />
During the course of <strong>2013</strong>-2015 KASE is<br />
expecting new IPOs that will take place within<br />
the framework of the People’s IPO program.<br />
Implementation of this program will enable<br />
KASE to offer additional attractive instruments<br />
for secondary market trading by local and<br />
foreign market participants and enhance the<br />
liquidity of Kazakhstani capital market.<br />
KASE is planning to continue upgrading<br />
existing trading and post-trading systems<br />
aimed at creation of technical framework for<br />
introduction of new instruments and ensuring<br />
easy and efficient access to the market. KASE<br />
is committed to development of our market’s ITinfrastructure<br />
both in a short-term and in a longterm<br />
prospective to ensure compliance with<br />
local and international investors’ requirements.<br />
CONTACT INFORMATION<br />
Contact Name Ms. Amina Turgulova E-mail amina@kase.kz Website www.kase.kz<br />
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