KTZ May Launch IPO in 2026

The long-delayed initial public offering of Kazakhstan Temir Joly (KTZ) may finally take place in the second half of 2026, Orda.kz reports.

The national railway operator is preparing to go public on two platforms — London and Almaty — with Citigroup, JPMorgan, and Société Générale coordinating the process.

The company’s estimated market value exceeds $10 billion.

Originally planned for 2023 and later rescheduled for 2025, the IPO has now been postponed once again. Samruq-Qazyna, the state-owned sovereign fund that controls KTZ, intends to sell up to 20% of its shares.

Analysts remain skeptical about investor appetite. QAMS Executive Director Daniyar Temirbayev earlier told LS that state participation in KTZ’s capital represents the biggest risk:

This is an unusual shareholder: the state regulates itself and pursues contradictory policies. For example, it simultaneously brings Air Astana to the IPO and a Vietnamese low-cost airline to the market. Investors are wondering: is it possible to work with such a shareholder? And will they then start stripping assets from KTZ?

Financial reports show the company remains heavily reliant on government support.

By the end of 2024, KTZ’s total debt had climbed to 3.9 trillion tenge — an increase of 800 billion from the previous year. Even the company’s full asset base would not cover its liabilities. Operating profit stood at 160.8 billion tenge on revenue of 948 billion, but auditors noted that subsidies continue to sustain operations.

In 2024, KTZ issued three bond tranches, all purchased by the state via Samruq-Qazyna:

• 143.6 billion tenge at 9.25% for the modernization of the Dostyk–Moiynty line
• 44.2 billion tenge at 1.8% for the construction of the Darbaza–Maktaaral section
• 30 billion tenge for debt refinancing

Because the bonds were issued at below-market rates, part of the funding was recorded as shareholder contributions — effectively hidden subsidies.

Tax risks also remain unresolved. Auditors warn that ambiguous regulations could allow tax authorities to impose additional fees and penalties retroactively.

At the same time, KTZ’s senior management — 18 people in total — received 816 million tenge in 2024, averaging 45.3 million each. The Supreme Audit Chamber cited financial irregularities worth 29 billion tenge, inefficient spending of 168 billion, and losses of 307 billion.

Alikhan Smailov, Chair of the Supreme Administration of Railways, criticized KTZ leadership, saying that the once self-sustaining company is now “on the brink” due to conservative management and a failed privatization.

 He emphasized that state support should be limited to restoring infrastructure.

Samruq-Qazyna General Director Nurlan Zhakupov previously said that legislative changes are required before the IPO can proceed. He clarified that investors would obtain a stake in the company itself, but not in its infrastructure assets.

Prime Minister Olzhas Bektenov has also reaffirmed the government’s plan to exit non-priority sectors gradually.

Original Author: Ruslan Loginov