Market Tracker weekly bulletin – 22nd November 2018

Market Tracker weekly bulletin – 22nd November 2018

A round up of key developments in corporate transactions covered by Lexis®PSL Corporate and Market Tracker this week, including an IPO by uranium producer Kazatomprom, a potentially postponed IPO by ECI Telecom Limited and a mini trend report on gender diversity in the mining sector.

Transactions

Equity Capital Markets

Kazatomprom lists on London Stock Exchange

On 13 November 2018, Kazakhstani company Kazatomprom, the world’s largest uranium producer, listed on the London Stock Exchange’s Main Market (LSE) and the Kazakh Astana International Exchange.

Kazakhstan has been the world’s leading uranium producer since 2009, with around 39% of the world’s uranium resources. Kazatomprom is Kazakhstan’s national atomic company and controls all uranium exploration and mining as well as other nuclear-related activities. The Kazatomprom IPO is the second listing this year to take advantage of an increase in uranium prices since 2016. Yellow Cake plc, a company set up to allow investors the opportunity to invest in the long-term performance of uranium, listed on AIM in May 2018. Incidentally, Yellow Cake have entered into a long-term uranium supply agreement with Kazatomprom for the next 9 years.

The Kazakh sovereign wealth fund Samruk-Kazyna, which is wholly-owned by the government of Kazakhstan, sold 15% as part of the flotation, retaining 85% of the company’s share capital. The shares were sold in the form of global depositary receipts (GDRs). Kazatomprom outlined an initial price range of $11.60-$15.40, subsequently pricing the receipts at the lower end of the range. At the close of trading on the first day of admission to the LSE, the company’s GDRs were trading at $12.00, 3.4% above the issue price.

The sale is the first in a series of privatisations in Kazakhstan. State-run oil and gas company KazMunaiGas is reportedly in the process of finalising plans for an IPO that could raise up to $6.5bn. Kazatomprom’s major shareholder Samruk-Kazyna is also the largest shareholder in KazMunaiGas, controlling

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About the author:
Jenisa is Head of Market Tracker, a transaction analysis product that sits within Lexis®PSL Corporate. She has over 13 years of legal publishing experience, with a focus on researching and reporting on trends and developments in the corporate and commercial legal market. Previous roles include content developer for Lexis®PSL, Legal Podcaster at Informa, and Research Editor at Practical Law Company where she specialised in reporting on cross-border corporate and commercial developments from the firm’s New York office.