The Kazakhstan Stock Exchange (KASE) is increasing the attractiveness of its market for companies which are planning to list their stocks on the KASE for IPO (Initial Public Offering).

To promote the issuers that are planning IPO on the KASE, the Republic of Kazakhstan’s Agency for Control of Activities of the Regional Financial Center of Almaty (ACA RFCA) initiated the introduction of relevant amendments to the KASE’s internal documents.

Draft amendments No.1 to the KASE’s internal document called Listing Rules was worked out by the KASE in cooperation with ACA RFCA.
It was informed earlier that the said amendments were put into effect on August 25, 2010 and provides for, among other things, the benefits when paying the listing fees for the companies which apply for listing of their stocks in the KASE’s official listing for the purpose of IPO, provided that the companies meet the following conditions:
- The listed stocks are included in the KASE’s official list for the first time for IPO;
- The listing of stocks is carried out on the KASE through the application of one of the methods of open trade
- The amount of raised funds, based on the IPO results, for which six calendar months are provided as from the date of entering into effect of the Listing Commission’s Resolution on inclusion of the stocks in the official listing, shall be not less than the equivalent of 1,000,000 monthly calculation indexes
- When carrying out the IPO, not less than 50 investors are required to buy the listed stocks
- Based on the IPO results, the number of stocks offered for buying shall not be less than 10 % of the total number of listed stocks of the listed company which initiated the IPO (except for those stocks which are bought out by the issuer, are in encumbrance or blocked).

If the above-mentioned conditions are met, the Initiator of the stocks admittance for IPO shall be exempt from payment of an entrance fee and first annual listing fee.

The Listing Rules and Amendments No.1 to them are published at the KASE’s web-site: http://www.kase.kz/files/normative_base/listing_rules.pdf

Also the KASE undertook to provide expanded information support to the listed companies while they are making the IPO on the KASE.

On August 13, 2010, the Resolution of the KASE’s Board set a procedure for provision of information support to companies while they are making the latter of the IPO on the KASE (further the Procedure).

The information support can involve the following events, which are organized and held on the KASE free of charge with the use of those resources that are available on the stock exchange, of the issuer which places the stocks, and of its financial consultant:
- Organization and presentation of the issuer that lists the stocks before the representatives of concerned parties, except for mass media (not more than 30 participants)
- Organization and conducting of a briefing for the representatives of mass media with the participation of the KASE’s representatives, the issuer of placed stocks, and/or its financial consultant
- Creating a link at the KASE’s web-site in the section of Events and placing the information and materials there concerning events, conducted by the KASE, devoted to IPO (for example, a presentation of the issuer, briefing for mass media, and other), with the release of relevant news on every publication
- Announcement of a specialized trade for listing of stocks on the KASE through the release of relevant news by the KASE, to be no more than twice a week throughout the month and on the eve of every specialized trade
- Organization and conducting of the Company’s Day event on the KASE that involves:
- The release of special material about the issuer in a form of KASE’s news throughout the entire working day or stipulated period with a certain time interval
- Publication of marketing material of the issuer of listed stocks in the Issuers section at the KASE’s web-site, devoted to the given issuer, with announcement of every publication in the KASE’s news
- Placing an advertising banner of the issuer at the KASE’s web-site with a link to the agreed content or page on the Internet.

The certain list of events, peculiarities of their conducting, forms and methods of the information support shall be the subject of the contract, to be executed between the KASE, the issuer of the listed stocks, and/or its financial consultant.

For more detailed information about the Procedure, please visit the KASE’s web-site at: http://www.kase.kz/files/normative_base/kase_ipo.pdf

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