Kazakh carrier Air Astana plans London listing

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Kazakhstan’s national carrier Air Astana has announced plans to float in London, in a rare boost for a stock market that has struggled to attract listings.

Air Astana on Friday said it hoped to raise $120mn through twin listings on the London Stock Exchange and in Kazakhstan.

The proposed listing marks a potential windfall for defence company BAE Systems, which owns 49 per cent of the carrier. The rest is owned by the Kazakh sovereign wealth fund. Air Astana did not disclose how much of the company it intended to sell in the IPO.

The London stock market has failed to attract companies over the past year and suffered a string of disappointments as companies moved their listings or chose to float elsewhere.

Recent snubs have included Europe’s largest tour operator Tui, whose board last week recommended to shareholders that it cancel its UK listing, while UK commodities broker and clearer Marex plans to float in New York.

Air Astana, which carried 6mn passengers in the first nine months of the year, operates a fleet of 49 aircraft.

The company flies a full-service airline as well as a low-cost operation called FlyArystan, which between them fly to a string of major international destinations including London, Amsterdam and Beijing.

Aviation industry executives see central Asia as a potentially lucrative new market, as economic growth expands the numbers of people who can afford to fly.

Despite recent growth, Air Astana said it believed the market in Kazakhstan “continues to be underserved”.

“We are confident that the initial public offering will accelerate the next stage of growth for the Air Astana Group, and we see significant opportunities to thicken our existing routes and expand into new geographic areas,” chief executive Peter Foster said on Friday.