At the company's annual general meeting of shareholders, the shareholders of KEGOC approved a secondary offering (SPO) of shares.

"Samruk-Kazyna is persistently and methodically working to privatize the Fund's assets and denationalize the economy. With the help of the SPO, KEGOC will strengthen its financial position and be better able to launch new investment initiatives for the modernization and expansion of its energy infrastructure. This, in our opinion, is a crucial step toward increasing the openness, effectiveness, and competitiveness of the Fund's portfolio companies" noted Saltanat SATZHAN, Samruk-Kazyna’s MD for Development and Privatization.

The company will offer 15,294,118 of its ordinary shares as part of the SPO; however, Samruk-Kazyna JSC will retain at least 85 percent of the total number of shares.

"KEGOC has significant growth potential as a result of new regulatory changes and a growing electricity market. Since its initial public offering in 2014, the company's share price has tripled, and shareholders have received approximately 218 billion tenge" said Nabi AITZHANOV, Chairman of KEGOC's Management Board.

KEGOC's SPO will be held via an additional issue. The joint coordinators and bookrunners of the SPO are Freedom Finance JSC, Halyk Finance JSC and SkyBridge Invest JSC. The co-underwriters are BCC Invest JSC and Jusan Invest JSC.

Current shareholders who own 17 or more KEGOC shares will be able to purchase shares in the additional share offering first through a pre-emptive right available for 30 days, from September 28 to October 27, inclusive. Current shareholders will be able to apply through brokers or directly to KEGOC.

Applications from the new investors for participation in the offering will be accepted from October 16 to November 2, inclusive. SPO applications can be submitted through brokers, bank and Tabys applications, and Kazpost JSC branches.

At the end of 2014, KEGOC officially announced its initial entry into the domestic stock market. It was announced that a stock worth 10% minus one share of the company, or 25.9 million ordinary shares, would be placed at a price of KZT 505 per share. According to the results of the People's IPO programme, the total number of applications for the purchase of KEGOC shares was 41,997 for a total of KZT16.68 billion, while the maximum volume of the offering was set at KZT13.13 billion.

KEGOC is the system operator of the unified power system of Kazakhstan. The national power grid is used for transmission of electric power from power producers connected directly to the national power grid to wholesale consumers connected to this grid.

KEGOC's net profit increased one and a half times in the first half of 2023 compared to the same period in 2022, rising from KZT 14 billion to KZT 23 billion. KEGOC's net profit this year is expected to be around KZT 31.5 billion, up from KZT 26.7 billion in 2022. Operating income increased by 11.3 percent, or KZT 11.56 billion, to KZT 114.4 billion in the first half of 2023.

As of 1 July, new tariffs and tariff estimates were set for regulated services for electricity transmission in the national power grid, use of the national power grid, technical dispatching of electricity supply and consumption in the grid, and balancing of electricity production and consumption.

A Single Electricity Purchaser (SEP) mechanism has also been introduced in the market since 1 July, with The Financial Settlement Centre for Support of Renewable Energy Sources (FSC for RES) under the Ministry of Energy of the Republic of Kazakhstan appointed as SEP. The SEP shall conduct tenders on KOREM’s electronic platform, buy electricity produced in the country in a day-ahead mode, and resell it to consumers.

Along with the transmission service, KEGOC began to offer consumers a new service of using the national power grid, which increased the number of consumers and, as a result, improved the company's profit forecasts. Previously, any enterprise or regional distribution network purchased electricity from the nearest power plant with the required capacity at prices dictated by the supplier; now, the subordinate enterprise of the Ministry of Energy of the Republic of Kazakhstan purchases it at fixed prices from all electricity producers and delivers it to these consumers at fixed tariffs via KEGOC networks. Previously, the prices were highly dependent on region, supplier, seasonality, and other factors. These innovations have helped to level the playing field, make price more equitable, optimize supply costs, and reduce losses, downtime, and congestion for producers.

Payments to KEGOC shareholders totalled more than 112.8 percent of net profit in 2022. (KZT 30.17 billion). Dividends must be paid at least 60% of net profit, according to the company's dividend policy. The Company will pay dividends totaling KZT 20.2 billion in the first half of 2023.

If you have any questions, please contact the Investor Relations Department or KEGOC's press service.

This press release is issued in connection with the decision of Kazakhstan Electricity Grid Operating Company JSC’s general meeting of shareholders to list ordinary shares on the Astana International Financial Centre Exchange ("AIX") and the Kazakhstan Stock Exchange, and not in connection with a prospectus, or an offer to sell or a solicitation of an offer to buy, or a recommendation to sell or buy securities, or to make purchase or subscription decisions in the AIFC or any jurisdictions within the meaning of PR 5. 5, 5.6 (Requiring Relating to the Issuance of Common Shares).5, 5.6 (Requirements relating to Prospectus Offers in or from the AIFC) or 10 (Financial Promotions) of AIX Business Rules. This announcement is not intended to be used as an advertisement in the Republic of Kazakhstan or for the purposes of the Republic of Kazakhstan's laws.

Neither this press release nor any of its provisions shall give rise to any offer or commitment of any kind in any jurisdiction and should not be relied upon in connection with offers or commitments in any jurisdiction. Investors should not subscribe for or purchase any of the securities referred to in this announcement other than on the basis of the information contained in the final version of the prospectus (the "Prospectus") prepared by KEGOC in connection with the potential listing of the Ordinary Shares at AIX and their admission to official trading on the main AIX platform. In accordance with the requirements of the AIX Business Rules, the Prospectus will be prepared in English and KEGOC will translate it into Kazakh and Russian. The translation of the Prospectus into Kazakh and Russian and/or other languages is not reviewed or endorsed by AIX. In any doubt, the English version of the Prospectus should be relied upon. Once approved, the English, Kazakh and Russian versions of the Prospectus will be available for inspection on KEGOC's website at https://www.kegoc.kz.