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By Sujata Rao and Shadia Nasralla
LONDON Oct 18 Kazakhstan plans to sell up to 10
percent of its state grid KEGOC in an initial public offering in
the second quarter of next year and is also considering issuing
international bonds in 2013, senior government officials said on
The KEGOC sale would be one of the first in the
oil-producer's "People's IPO" programme. Kazakhstan hopes to
invigorate the small local stock market and raise around $500
million from a first round of IPOs.
"With KEGOC we have solved all major problems, the company
is ready," Kuandyk Bishimbayev, deputy head of sovereign wealth
fund Samurk-Kazyna told Reuters on the sidelines of a
"It's planned now for the second quarter of 2013 and I think
it's going to happen."
Bishimbayev said the government planned to sell up to 10
percent of state-owned assets under the IPO programme.
Kazakhstan had planned to launch the programme by the third
quarter of this year, but it postponed the first listings
because of the volatile global market.
Bishimbayev also said the books would be opened on an IPO
for KazTransOil in the first five days of November.
He said a raft of companies could be sold next year,
including Kazmortransport, Samruk-Energo and Kaztransgaz.
"They are on the agenda but the decision has not been made,"
he said, adding that he was confident this would go ahead but a
number of issues needed to be solved first.
Kazakhstan is also considering issuing Eurobonds next year
following a recent restructuring deal of the debt of sovereign
wealth fund-owned bank BTA, deputy prime minister
Kairat Kelimbetov told the conference.
"The BTA story will soon be over and next year we, the
government of Kazakhstan, will consider issuing bonds of the
ministry of finance," Kelimbetov said.
"Even though we have a deficit of less than 2 percent of
GDP, we must come back to the market to establish a benchmark."
The country has a huge infrastructure programme, Kelimbetov
He told Reuters Kazakhstan's 2012 growth forecast had been
cut to 5.4 percent from 5.8 percent in the country's budget
plan, which was now going through parliament.
(Writing by Carolyn Cohn; Editing by Ruth Pitchford)