Kazakhstan Financial and Corporate Growth Forum Dual Listings

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Kazakhstan Financial and Corporate Growth
ForumDual Listings International Fund Raising
Legal and Regulatory Implications28 March 2007
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IPO/Offering objectives

• Fund raising for issuer
• Realisation of value by owners
• Future capital appreciation
• Profile
• Other

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Offering structures

• Public offering
• Institutional IPO
• Private placing
• Pre-emptive offers
• Investor education and Book- building

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Domestic/international/dual

• Objective
• Demand
• State of readiness
• Cost
• Ongoing compliance

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Kazakh or international holding companies

• Choices
• Criteria
• Implementation

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Choices

• Kazakh company
• Tax-paying jurisdiction
• Offshore jurisdiction
• Other

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Criteria

• Legal issues
• Taxation
• Market perception
• Types of security to be offered

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Kazakh issuer

• Type of company
• Domestic taxation
• Corporate governance
• Implementation
• Other considerations

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New Holding Company

• Required end result
• Corporate governance and reporting structures
• Implementation Kazakh scheme or takeover
• Consents required
• Takeover structures
• Relationship between parent and subsidiary
• Minority holders related party issues

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Types of security offered

• Bonds
• GDRs
• Shares

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Bonds

• Straight Debt/Convertible
• Issuer and relationship to holding company
• Conversation rights
• Listing implications
• Kazakh taxation and regulatory provisions
  onshore/offshore issuer

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GDRs

• Structure
• Kazakh or overseas issuer
• Kazakh Holder rights
• dividends
• pre-emption
• voting

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GDRs (2)

• Listing
• Basic treatment
• London Regulated market PSM
• Participation in international clearing systems

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Shares

• Kazakh or overseas
• Exercise of holder rights
• dividends
• pre-emption
• voting
• Listing implications
• Kazakh share ownership structure
• Participation in international clearing systems

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Offerings by Kazakh Issuers

• Shareholder approvals
• Regulatory approvals
• Pre-emption rights
• Timing
• Process
• Participants
• Kazakh securities promotion rules
• Change of control provisions

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Dual Offerings by Kazakh Issuers

• Concurrent or separate
• Treatment of pre-emption rights and integrating
  the process
• Dual listings
• Arbitrage

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Dual Listings

• Attitude of KASE
• Primary/secondary/dual
• Treatment on other exchanges

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Dual Listings

• Reasons
• Compliance issues
• Arbitrage
• Structures
• Movement of shares between exchanges the role
  of the Central Securities Depositary

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Dual Listings - Process

• KASE admission process
• International Stock Exchange processes
• Arbitrage
• Structures
• Movement of shares between exchanges the role
  of the Central Securities Depositary

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Future Trends ?

• Growth in liquidity in Kazakh markets
• More dual offerings
• Change of control regimes
• Arbitrage
• Kazakhstan markets a regional hub?

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Norton Rose Overview

• Simon FT Cox
• Partner
• Norton Rose
• Kempson House
• Camomile Street
• London EC3A 7AN
• United Kingdom
• t 44 (0)20 7444 3548
• f 44 (0) 20 7283 6500
• Email simonFT.cox_at_nortonrose.com
• Norton Rose is an international
• legal practice with 21 offices
• in 17 jurisdictions

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GRATA Overview

• Rashid Gaissin
• Managing partner
• GRATA Law Firm
• 39 Gogolya Street
• Almaty
• Kazakhstan
• t 7(327)259 0112
• f 7(327)259 0198
• Mobile
• 7 701 757 82 66
• Email rgaissin_at_gratanet.com

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• Disclaimer
• The materials in this pack have been prepared to
  provide a general outline of the issues covered.
  They should not be regarded as a comprehensive
  statement of the law and practice relating to
  this area. Readers should take specific legal
  advice on any particular matter which concerns
  them. If you require any advice or information,
  please speak to your usual contact at Norton Rose
  or Grata.