In the course of IPO of Exploration Production KazMunayGas JSC pension funds of Kazakhstan purchased more than 7.3 m. common shares on domestic market

/INTERFAX-KAZAKHSTAN, October 3, 06, title and comments of IRBIS/ - In the course of initial public offering of Exploration Production KazMunayGas JSC (oil-producing "daughter" of the national oil and gas company of Kazahstan KazMunayGas) on Kazakhstan stock exchange (KASE) 7.3 m. common shares of this company were purchased by home pension funds. "At the offering of shares on domestic market we adhered such policy to support pension funds of Kazakhstan in the first place. Today we have the information available that more than 7.3 m. shares in the course of the initial offering were acquired by Kazakhstan pension funds," informed Zhaksybek Kulekeev, the first vice-president of KazMunayGas, on the press conference on Tuesday in Almaty, devoted to the opening of 14th international oil and gas exhibition KIOGE-2006. At the he emphasized that bids of all of our pension funds "were satisfied in the first place and by 100%". Z. Kulekeev also noted that results of IPO exceeded expectations of the company. "By results of given deal we managed to borrow USD2.3 m. Of course, if one estimates results of this deal, he may note that we exceeded our expectations: we planned to borrow under USD2 m.," said the first vice- president of the national company. He reminded that the market value of Exploration Production KazMunayGas JSC will be determined in the course of trades on London stock exchange (LSE) and KASE, which will start on October 4. As it was reported, Exploration Production KazMunayGas JSC on September 29 announced final price for its securities within coming IPO. Exploration Production KazMunayGas JSC (...) informs about successful completion of offering GDR and common shares among investors a t the price of global depository receipt at the amount of USD14.64 and at the price of common share at KZT11163.39," was indicated in the message of the company spread that day. Current rate - KZT127.24/$1. Global offering consists of 23,086,791 again issued common shares, offered by the company, along with 3,463,019 existing common shares, which are offered by underwriters on begalf of KazMunayGas with the purpose of market stabilization after the offering. Securities are offered in the form of GDR for listing on LSE and common shares, which are already in KASE's listing; six GDR corresponds to one common share, is noted in the message. "Based on price of global offering, volume of global offering before shares, offered with an aim of stabilization, is approximately $2 bn. (approximately KZT258 bn.), which will condition on market capitalization (without taking into account preferred shares) in the amount of approximately $6.2 bn., or KZT784 bn.," was emphasized in the message. It is expected that conditional trades of GDR will start on LSE under exchange symbol "KMG" on October 4 of current year at 11:00 of London time (16:00 of Astana time) at the same time with the beginning of unconditional trades on KASE. It is also expected that inclusion in the Primary list and start of unconditional trades of GDR on LSE will be held at 08:00 of London time on October 5. Company assigned banks ABN AMRO Rothschild and Credit Suisse the joint global coordinators and joint book runners. Visor Capital is the lead manager and settlement bank for deals on the territory of Kazakhstan. ABN AMRO Rothschild and Credit Suisse do not have the right to execute any kind of offerings or sales in Kazakhstan. Sales of 3,463,019 existing shares of KazMunayGas (which is equivalent to 15% of the amount of global offering) will be suggested to underwriters with the purpose of accomplishment and stabilization of GDR market. Earlier range of prices of the global offering was declared within USD12.75 to USD14.75 per GDR and from KZT9,649 and 71 tiyins to KZT11,163 and 39 tiyins per common share. The company offers 40% of its shares. Exploration Production KazMunayGas JSC was founded in March 2004 as a result of unification of daughter companies KazMunayGas - Embamunaygas and Uzenmunaygas, which mine 188 th. barrels per diem. Procceds of the company Exploration Production KazMunayGas grew from $1.2 bn. in 2003 to $2.6 bn. in 2005, profit increased in this period from $275 m. to $1.068 bn. Compamy is the third biggest producer of oil in Kazakhstan and had, according to data at the end of 2005, reserves at 1.515 bn. barrels. Comments of IRBIS: offering of shares described above was not conducted in trading system of KASE. On domestic market of Kazakhstan the offering was made by subscription, at which investors submitted written bids for purchase of shares of broker-dealer companies- -members of KASE. The latter sent accumulated bids of VISOR Capital JSC, which presented data to the issuer of shares. By the terms of subscription settlements for acquired shares are made through corresponding services of Kazakhstan stock exchange. (KASE). [2006-10-03]