Astana Motors (Kazakhstan) plans IPO in 2009

/REUTERS, Tatyana Seroshtanova, Almaty, July 16, 2008/ - Auto dealer Astana Motors plans first among Kazakhstan retailers to enter foreign markets of shareholders capital and prepares IPO in 2009, the president of Astana Group Nurlan Smagulov said in interview to REUTERS. Astana Motors, founded in 1992, enters Astana Group along with Crop Company Zernovaya industriya and developer MEGA Development. "It will really be foreign floor. At first, they provide best liquidity, secondly, allow to borrow more assets for developing and what is more important, more precise reflecting market price of the company" - Smagulov said, rejecting to name expected IPO volume. "Financial parameters will be announced later, after audit completing... A long process of preliminary work is ahead and all will depend on international capital market situation", - he said. Astana Motors is official distributor of Subaru, Hyundai and BMW, and also dealer of Toyota and Nissan. "During the preliminary period the company will be more transparent, its structure will be optimized, independent Board of directors will be formed and corporate management will be established. Moreover, there was no other case of entering IPO among Kazakhstan retailers", - Smagulov said. Kazakhstan receives significant income part from oil and metal export and now only oil state company's shares are traded on western exchanges and also some securities of mining and smelting sector, the range of banks and one developer. Smagulov said that the audit will be performed by one of "Big 4". "As soon as we finish preliminary process, we'll analyze capital market condition and only then will take decisions on what floor, in what form and what instruments we will offer to potential investors" - the president of Astana Group added. INVESTMENTS Investments in dealer` net developing during nearest 5 years will make $80 m. of both borrowed and own assets. Dealer net of companies covers 16 Kazakhstan cities. According to company's own estimation, its stake on the market makes 35%. Astana Motors plans to direct borrowed assets to activity expanding in Kazakhstan, in particular to construction of new auto centers and not yet plans entering neighboring markets. "We have enough place - in our opinion, Kazakhstan car retail hasn't opened yet its potential" - Smagulov said. Kazakhstan annually imports nearly 300,000 cars, 15-20% of which came to new foreign trademarks, from them only 10% is "official" import. In the country there are about 145 cars per thousand men. "The potential is huge. The market of "official" sales grew very fast. You can see it by the example of our company - 5 years ago we sold 500 cars a year, 4 years ago - 1000 and a year ago our sales exceeded 11,000 cars" - Smagulov said. Astana Motors, which have increased the stake of service and spare parts in income structure to 30-40% from 5-10%, plans to construct auto centers in metropolises. "Now we construct the complex in Astana, prepare to construction in Aktobe, have plans on construction in Atyrau and other cities" - Smagulov said. In the whole, sales balance is shifting in favor of regional purchaser. "If earlier in Almaty 90% of cars were selling, now it is only about 50%" - the president of Astana Group said. [2008-07-16]