Air Astana has bagged an $847m (£671m) valuation from investors as it gears up for a Valentine’s Day IPO that will be seen as a test of the health of London’s beleaguered listings market.
In an announcement to the market this morning, the Kazakh airline, which is half-owned by BAE Systems, said it would float at a price of $9.5 per share, giving the firm an implied valuation of $847m.
The float will be seen as a key indicator of the state of London’s markets and the appetite of investors after a torrid two years in which listings have dried up. Firms have also struggled after listing as inflation and raising interest rates continue to roil markets globally.
Air Astana will dual list in London and Kazakhstan, with the London Stock Exchange hosting so-called global depository receipts, which represent one share. The firm had been targeting a range of between $770m and $962m dollars in its flotation.
Air Astana said it was set to begin trading on the London Stock Exchange on the 14th February.
“We are delighted to share our success today as we close the books on our initial public offering and commence conditional dealings on the London Stock Exchange and AIX,” said chief peter Foster today.
“The strength of investor support reflects our profile as a profitable, high-growth airline group underpinned by compelling market dynamics.”
He added that interest had been strong both “domestically and internationally”, and this had resulted in a “highly successful IPO multiple times oversubscribed”.
“The triple listing on the London Stock Exchange, Kazakhstan Stock Exchange and Astana International Exchange has created the perfect platform to raise capital while allowing both local citizens and international investors to participate in our success story,” he said.
This is the start of an exciting new phase for the Air Astana Group and we welcome all our new shareholders as we deliver our growth strategy.”