Otbasy Bank May Hold IPO

The state-holding Baiterek is considering the option of Otbasy Bank going public (initial public offering). This possibility was discussed in 2016-2019, but the bank was not financially stable enough then, Orda.kz reports.

The Kazakhstan Association of Minority Shareholders (QAMS) reported on Telegram that Otbasy Bank may begin the procedure for an initial public offering of shares. According to its estimates, the economic situation has changed enough now that the issue of the bank's IPO can be considered.

For comparison: the bank’s net profit indicators for 2019 amounted to 27 billion tenge, and for 2023 - 147 billion. Otbasy Bank’s assets have grown almost threefold: at the end of 2019, they amounted to 1.3 trillion tenge, and at the end of 2023 - 3.99 trillion, notes QAMS.

Placing shares on the stock exchange will not affect the current preferential interest rates on loans, participation in state programs, and the implementation of housing projects.

According to QAMS, up to 40% of Otbasy Bank shares may be sold as part of privatization. By attracting investors, the bank will be able to return to the state the funds invested in its creation — 78 billion tenge — and reduce the state's share of the mortgage market.

Other companies that have gone public are Air Astana and KazMunayGas. Air Astana, in particular, raised $120 million through an initial public offering.

Original Author: Nikita Drobny