The outcomes of the secondary offering of shares (KEGOC’s SPO) on Kazakhstani stock markets, which took place between September 28, 2023, and November 2, 2023, were announced by Samruk-Kazyna JSC and KEGOC JSC.

More than 50 thousand bids were received from investors for the total amount of over KZT 34.8 billion, which exceeded the planned placement volume by 1.5 times.

Based on the results of the analysis of the received bids, a decision was made to satisfy applications totalling over KZT 22.6 billion, which corresponds to the maximum number of authorized shares: 15,294,118 (fifteen million two hundred ninety-four thousand one hundred eighteen) ordinary shares.

The distribution followed with previously stated share distribution guidelines, with the goal of avoiding concentration of considerable blocks of shares at separate large investors. To this end, all bids from Kazakh citizens were satisfied.

KEGOC sold 15,294,118 (fifteen million two hundred and ninety-four thousand one hundred and eighteen) ordinary shares as part of the secondary placement of shares, representing about 5.6% of the total number of ordinary shares placed by the business. As a result, Samruk-Kazyna's stake of KEGOC shares will be at least 85% of the total number of shares.

The investor bids have distributed as follows:

• KZT 15,203,099,964 (67%) for Kazakhstan nationals (individuals);
• KZT 7,158,346,026 (32%) for Kazakhstan legal entities;
• KZT 300,537,744 (1%) for foreign individuals.

The priority was given to bids received from citizens of the Republic of Kazakhstan, after satisfaction of which (in full) a decision was made to satisfy bids of other persons who submitted bids.

Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna JSC:

"A significant portion of bids (44%) came from retail investors, indicating our country's strong interest in the investment opportunities provided by the Fund as part of the IPO/SPO of large national companies. Bids from the institutional investors accounted for 55% of the book. A minor portion (1%) came from overseas citizens.

The final proportion of the book, taking into account the priority of satisfying the bids from Kazakhstan citizens, was as follows: 67% for retail investors, 32% for institutional investors, and 1% for foreign citizens.

Such diverse demand for KEGOC shares from various classes of investors demonstrates the company's high investment attractiveness and the market's confidence in KEGOC's development prospects in light of the planned commissioning of new generating capacities in Kazakhstan, as well as changes in the regulatory environment.”

Nabi Aitzhanov, Chairman of the Management Board of KEGOC:

“We see success of KEGOC's SPO as citizens' trust in the state and our enterprise. According to its outcome, the company's free float will expand from roughly 2.7% to 8.1%, which will boost KEGOC’s share liquidity and contribute to the development of Kazakhstan's stock market. We shall continue our structural efforts to enhance the power grid. The proceeds from the SPO, in particular, will be used to further the growth of KEGOC.

KEGOC is a company with an impeccable dividend history, and the trust that the market has placed in us is an additional motivation to show the best performance in implementation of our plans for our compatriots".

On November 9, 2023, all shares sold under KEGOC’s SPO will be allocated in accordance with the satisfied bids (in the satisfied volume) and credited to the respective investors' accounts, with the respective cash amounts debited from their accounts as payment for the KEGOC shares purchased by the investors. The Astana International Exchange (AIX) will begin secondary trading on November 10, 2023.

SPO KEGOC is held in accordance with the instructions of the Head of State, as well as in accordance with the Comprehensive Privatisation Plan for 2021-2025 approved by the Resolution of the Government of the Republic of Kazakhstan "On Some Privatisation Issues for 2021-2025" No. 908 dated 29 December 2020.

Freedom Finance JSC, Halyk Finance JSC and SkyBridge Invest JSC act as joint coordinators and bookrunners of the SPO. The co-underwriters are BCC Invest JSC and Jusan Invest JSC.

The funds raised from the SPO will be used to implement KEGOC's major investment project to strengthen the networks of Zone South of the Unified Power System of Kazakhstan. The project includes construction of two 500 kV Shu-Zhambyl-Shymkent lines with a length of 475 km and the associated expansion of three 500 kV electrical substations. This is a strategically important project that will improve the reliability of power supply to consumers in Zone South due to the projected growth in electricity consumption, facilitated the evacuation of power from the RES facilities, concentrated mainly in Zone South.