The Resolution of the Government of the Republic of Kazakhstan dated October 24, 2025 No. 894 “On certain issues of optimisation of quasi-public sector entities and state-owned property”, contemplates that the IPO of KTZ would occur in 2026. This remains the Fund’s and KTZ’s objective.
At present, the Fund, together with KTZ, is actively preparing for the international IPO of KTZ, which is expected to involve a triple listing on the London Stock Exchange, the Hong Kong Stock Exchange (LSE and HKSE) and a local stock exchange in Kazakhstan.
The IPO is proposed to be structured exclusively as a primary equity offering – i.e. an issue of equity securities by KTZ, rather than a sale of securities by the Fund on a secondary market. Thus, all funds raised through the IPO will be retained by KTZ for its own purposes.
It is expected that the proceeds raised through the IPO will be used to repay of a portion of its existing debt obligations, and to implement a large-scale investment program aimed at the development and modernisation of railway infrastructure, increasing the capacity of transport corridors, renewal of rolling stock, and, more generally, strengthening the country’s overall transit potential.
The IPO of KTZ, like any other company, requires a great deal of preparatory work, including in order to enhance the attractiveness of the asset for outside investment; such preparatory activities are currently being carried out by the Fund and KTZ in coordination with the Government of the RK. At the present time, it is not possible to disclose additional details of the preparatory work.
A detailed assessment of financial market conditions will be carried out by the investment banks which are engaged by KTZ closer to the time of the IPO. This assessment, together with KTZ’s readiness and investor interest, will be factors which may affect both the timing and the structure of the IPO.