Kazakhstan Temir Zholy (KTZ), the state-owned railway operator fully held by Kazakhstan's sovereign wealth fund Samruk-Kazyna, has filed an initial public offering application with the Hong Kong Stock Exchange, with China International Capital Corporation serving as sole sponsor. The company operates Kazakhstan's trunk railway network and owns the country's largest locomotive and rolling stock fleet. In May, Samruk-Kazyna announced a tri-listing plan targeting the London Stock Exchange, HKEX, and the Astana International Exchange, initially stating the IPO would occur in 2026, though the same month Interfax cited Kazakhstan's Transport Minister Nurlan Sauranbayev indicating a delay to the first quarter of 2027. KTZ plans to use proceeds primarily for constructing a 272-kilometer Bakhty-Ayagoz railway line to create an additional border crossing with China, aiming to double cross-border freight capacity from approximately 50 million tons to 100 million tons annually.
KTZ Files Hong Kong IPO Application with CICC as Sole Sponsor
Kazakhstan Temir Zholy formally submitted its listing application to the Hong Kong Stock Exchange, with China International Capital Corporation acting as the sole sponsor. The company is wholly owned by Samruk-Kazyna, Kazakhstan's sovereign wealth fund. KTZ operates the country's trunk railway network and maintains the largest fleet of locomotives and railway vehicles in Kazakhstan. The preliminary prospectus indicates the company is registered in Kazakhstan.
Samruk-Kazyna Announces Tri-Listing Plan Across Hong Kong, London, and Astana
In May, Samruk-Kazyna, which fully owns KTZ, publicly stated it was actively preparing a tri-listing plan for KTZ across three exchanges: the London Stock Exchange, the Hong Kong Stock Exchange, and the Astana International Exchange in Kazakhstan. The statement indicated the IPO would proceed in 2026. However, in the same month, Interfax reported that Kazakhstan's Transport Minister Nurlan Sauranbayev stated the IPO timing would be delayed to the first quarter of 2027.
KTZ Plans Railway Expansion to China Border and Infrastructure Upgrades
According to the preliminary prospectus, KTZ intends to allocate proceeds to construct a 272-kilometer Bakhty-Ayagoz railway line and related infrastructure. The purpose of this project is to establish an additional railway border crossing to China, increasing cross-border freight capacity from approximately 50 million tons per year to approximately 100 million tons per year. KTZ also plans to conduct comprehensive, technology-driven upgrades to its railway infrastructure. A portion of the proceeds will be used for debt repayment.
KTZ Reports Revenue and Profit Growth in Latest Financial Year
In the last year, KTZ recorded revenue of USD 5.646 billion (2.76 trillion tenge), representing a year-on-year increase of 27.41 percent. The company's gross profit margin expanded to 30.2 percent. Annual profit reached USD 718 million (343.646 billion tenge), marking a year-on-year surge of 114 percent. KTZ provides one of the key overland transport corridors connecting Kazakhstan's production centers with China, Central Asia, Russia, the Caspian region, and Europe.
Hong Kong Chief Executive Visits Samruk-Kazyna to Discuss IPO Preparations
Last month, Hong Kong Chief Executive John Lee led a delegation to Kazakhstan and visited Samruk-Kazyna, where he met with Chief Executive Officer Nurlan Zhakupov. The meeting included discussions on the preparatory work for KTZ's potential listing in Hong Kong and other locations.
FAQ
What is KTZ's planned use of IPO proceeds?
KTZ plans to use proceeds to construct a 272-kilometer Bakhty-Ayagoz railway line and related infrastructure to create an additional railway border crossing to China, aiming to increase cross-border freight capacity from approximately 50 million tons per year to approximately 100 million tons per year. The company also intends to conduct comprehensive technology-driven upgrades to its railway infrastructure and use a portion of proceeds for debt repayment.
What financial performance did KTZ report in its latest year?
In the last year, KTZ recorded revenue of USD 5.646 billion, a year-on-year increase of 27.41 percent, with a gross profit margin of 30.2 percent. Annual profit reached USD 718 million, representing a year-on-year increase of 114 percent.
When is KTZ's IPO expected to occur?
In May, Samruk-Kazyna stated the IPO would proceed in 2026 across the London Stock Exchange, Hong Kong Stock Exchange, and Astana International Exchange. However, in the same month, Interfax reported that Kazakhstan's Transport Minister Nurlan Sauranbayev indicated the IPO timing would be delayed to the first quarter of 2027.
