BAE Systems-owned airline Air Astana eyes £757m valuation in London IPO

29 January 2024 , 14:34

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Kazakhstan's national airline, Air Astana, is set to be valued at up to £757 million when it goes public (Image: PA Archive/PA Images)

Kazakhstan's national airline, Air Astana, is set to be valued at up to £757 million when it goes public in London next month.

The company, which is nearly half-owned by British defence giant BAE Systems, has set the price range for its shares between £1.68 and £2.16. The final price will be announced around February 9, according to the company.

This listing will give a much-needed boost to the London IPO market. BAE Systems owns 49% of Air Astana, with the rest owned by the Kazakh sovereign wealth fund. BAE is expected to reduce its stake as part of the float, potentially earning the FTSE 100 firm a windfall.

The airline hopes to raise about £94.5 million from the float. In 2022, Air Astana had 49 aircraft and carried seven million passengers to major international destinations like London, Amsterdam, and Beijing. In 2022, it reported an operating profit of £117 million.

Group president and chief executive Peter Foster commented: "The response to the offering and strong investor interest have been very positive. As one of the fast-growing airline groups, we firmly believe that Air Astana represents an attractive investment proposition, supported by strong financial and operational track record, significant growth opportunities, and an experienced, disciplined management team."

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The firm is also selling global depositary receipts, or GDRs, alongside shares in the listing. These GDRs represent stakes in the company at a rate of one GDR for four shares, as stated by the group.

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Lawrence Matheson