Kazakh carrier Air Astana will be worth up to £757million when it lists in London next month, valuing BAE Systems’ stake at £370million.
The airline – owned by the British defence giant and Kazakhstan’s sovereign wealth fund – yesterday set the price range for its initial public offering (IPO).
Air Astana’s float will offer BAE Systems – which owns 49 per cent of the airline – a windfall, depending on how much of its stake it decides to sell.
The IPO will also buoy London’s stock market after a slump in listings over the past few years.
BAE Systems invested £7million in the airline in 2001 when it was trying to sell radar systems to the Kazakh military, a deal that eventually fell through.
Take-off: Air Astana, which is owned by the British defence giant and Kazakhstan’s sovereign wealth fund, has set the price range for its initial public offering
The FTSE 100 defence group, which last year valued its investment in Air Astana at £63million, is planning to retain a stake when the airline floats in February.
Air Astana will price its shares at between 168p and 216p each, giving it a market capitalisation of between £606million and £757million.
The final price will be set on February 9, with trading to start in London on February 14 and in Kazakhstan the following day. It is planning to use the £94million raised to fund expansion.
The airline’s president and chief executive Peter Foster said: ‘The response to the offering and strong investor interest have been very positive.’
The stock market suffered high-profile snubs last year, including Cambridge chipmaker Arm’s decision to float in New York.
