Kazakh carrier Air Astana to float in London in February

LONDON (Reuters) - Kazakh carrier Air Astana confirmed its plan to float in London, aiming to raise fresh funds to help fuel its growth, and allowing its investors Kazakhstan's sovereign wealth fund and British defence giant BAE Systems reduce their stakes.

Air Astana said in a statement on Friday it expected its initial public offering of new shares and existing stock on the London Stock Exchange and Kazakhstan's AIX market to go ahead in February, in a boost for London's sluggish IPO market.

The airline said it would float at least 25% of its share capital. It announced last week it was aiming to raise about $120 million from the IPO.

Air Astana flies 49 aircraft. It carried 7 million passengers and posted operating profit of $149 million in 2022.

The listing will be a windfall for BAE depending on how much of its 49% stake it sells.

BAE, whose main business is making fighter jets and submarines, invested less than $10 million in 2001 to help fund Air Astana's launch at a time when it was bidding to sell a radar system to Kazakhstan.

A BAE spokesperson said: "Air Astana is a thriving, well-managed business and presents an attractive proposition to the market."

London's market has struggled in recent years, hurt by Britain's departure from the European Union, and companies opting to list in the United States, where valuations are said to be higher.

In 2023, there were just 23 issuers listing in London according to data from E&Y, down 49% on the previous year.

(Reporting by Sarah Young in London and Yadarisa Shabong in Bengaluru; Editing by Sonia Cheema and Paul Sandle)