KEGOC shares are now available for purchase by all Kazakhstanis, as the second stage of the SPO began on October 16. KEGOC executives notified potential investors in Almaty about the start of the collecting of applications from new investors to participate in the secondary offering of shares in the country's major utility business, which will run through November 2nd, inclusive.
"Apps can be submitted both online and offline through brokers, banks, and Tabys applications, as well as Kazpost JSC offices. Simultaneously, the first stage of the SPO - the time of realization of the right of pre-emptive acquisition of shares for present KEGOC shareholders holding 17 or more shares - continues. The SPO went into effect on September 28 and will remain for 30 days, through October 27 inclusive. Current shareholders can submit applications either through brokers or directly to KEGOC "said Aigul Akimbayeva, KEGOC's Managing Director for Finance and Accounting.
The company's senior executive highlighted the vital position in the power supply sector, the company's large assets, predictable revenue growth, an exemplary history of paying dividends to investors, and the fair valuation of KEGOC shares as the primary reasons for purchasing the shares.
"The company has a consistent free cash flow and distributes dividends on a regular basis. The total amount of accrued dividends during the whole placement period (since 2014) was KZT 218 billion. KEGOC pays dividends to stockholders twice a year. The increase in the yield on the shares since the IPO date, including dividends and price growth, has been 400 percent during the last nine years. This year, the company modified its dividend policy, increasing dividend distribution from 40% of net profits to 60% ", emphasized Aigul Akimbayeva.
SPO provides 15,294,118 ordinary shares to shareholders; nonetheless, Samruk-Kazyna's ownership will be at least 85 percent of the entire number of the company's shares. One ordinary share costs KZT 1482. Leading broker organizations' target value for KEGOS shares is higher, reaching KZT1,950.
"Since its initial public offering (IPO) on the stock exchange in 2014, the price of KEGOC shares has more than tripled, rising from KZT 505 to 1,525. The brokers' average forecast estimate is 1817 tenge, which is greater than the company's present market value, and the brokers' recommendation is "to buy." All of the company's responsibilities to its stockholders are met. KEGOC consistently distributes dividends to stockholders twice a year. The issuer has a strong reputation, and the company possesses all of the requirements for revenue growth ", - remarked Zhamilya Sarsenbayeva, managing director of Jusan Invest JSC.
New regulatory reforms in the electricity market, as well as the introduction of a new service for "the use of the national power grid (NPG)," offer significant growth potential. The net profit for the first half of 2023 climbed one and a half times over the same period in 2022, from KZT 14 billion to KZT 23 billion. KEGOC's net profit is estimated to be around KZT 31.5 billion at the end of the current fiscal year, which is KZT 4.8 billion higher than in 2022. Operating income climbed by 11.3 percent, or KZT11.56 billion, in the first half of 2023, rising from KZT102.8 billion to KZT114.4 billion.
During the meeting the speakers answered the questions of the participants and voiced the company's further development plans. Almaty became the next city within the framework of the fair of Kazakhstan brokers KASE FEST. The first meetings were held earlier in Pavlodar and Astana, the next one will be held in Aktobe (20 October). Entrance is free, information about the venue and time is available here. It is expected that 2000-3000 people will attend the road-show meetings.
KEGOC SPO is held in accordance with the Privatisation Plan for 2021-2025, as approved by the Government of the Republic of Kazakhstan, and on the instructions of the Head of State for further denationalisation of the economy, including through the privatisation of state assets through additional issue.