KAZTRANSOIL ANNOUNCES FINISHING SUBSCRIPTION TO ITS ORDINARY SHARES OFFERED TO CITIZENS OF KAZAKHSTAN AND PENSION FUNDS UNDER PEOPLE'S IPO PROGRAM

06.12.12, 16:57
/Official website of KazTransOil - www.kaztransoil.kz, December 6, 12/ - JSC "KazTransOil" announces that yesterday December 5, 2012 at 19:00 o'clock it finished accepting orders (subscription) from citizens of the Republic of Kazakhstan and accumulative pension funds incorporated in accordance with the legislation of the Republic of Kazakhstan for purchase of ordinary shares offered on the organized security market under the government's "People's IPO" Program. The subscription was conducted in accordance with the "Rules of Subscription for Shares" approved by decision of Kazakhstan Stock Exchange's Board of Directors (minutes No. 05 dated March 23, 2012) and agreed upon with JSC "Central Securities Depository" and Committee on Regulation and Supervision of Financial Market and Financial Organizations of the National Bank of the Republic of Kazakhstan. According to the subscription terms, brokerage companies are obliged to submit to the book only secured (i.e. paid) orders. JSC "KazTransOil" reserves the right to reject/not to satisfy unsecured orders. According to preliminary results of the subscription a total of 25,218 orders were submitted, including: - orders from citizens of the Republic of Kazakhstan - 25,207, - orders from APFs and market-maker - 11. The volume of demand made up KZT55.9 bn, 2 times exceeding the offering volume. Citizens of the Republic of Kazakhstan submitted orders to the amount of KZT18.7 bn which makes up 67% of the offering. The average size of orders submitted by physical persons makes up around KZT740 thousand. Citizens who not managed to submit orders during the subscription period can purchase shares after opening of secondary trading at Kazakhstan Stock Exchange, beginning from December 25 this year. The final number of orders will be determined after December 10, 2012, after the forwarding of orders to JSC "Kazakhstan Stock Exchange" is completed and KASE has handed over to JSC "KazTransOil" the registry of orders for purchase of shares received from retail investors (citizens of the Republic of Kazakhstan) and accumulative pension funds. On December 19, 2012 JSC "KazTransOil" is to hand over to JSC "Kazakhstan Stock Exchange" the registry of orders satisfied. Shares will be distributed amongst various groups of investors as follows: 1. A market-maker's order for shares is satisfied in full in order to maintain liquidity on the secondary market. 2. JSC "KazTransOil" accepts for prior satisfaction orders from Retail investors to the amount under KZT7,000,000 (seven million). - In case the combined amount of orders from Retail investors being satisfied as top-priority (orders and parts of orders to the amount under KZT7,000,000 (seven million)) does not exceed the volume of shares being offered (minus the Market-maker's order), such orders from retail investors are satisfied in full; - In case the combined amount of orders from Retail investors whose orders are satisfied as top-priority exceeds the volume of shares being offered (minus the Market-maker's order), the maximum amount of order satisfaction will be reduced as follows: a. the reduction begins from the maximum amount of order satisfaction being equal to KZT7,000,000 (seven million) b. the reduction pace makes up an amount equal to one share's price; c. the reduction is carried out until the combined demand's amount and the volume of shares offered equalize. 3. The volume of shares not demanded by Retail investors who submitted orders to the amount under KZT7,000,000 (seven million) is offered amongst APFs according to orders they submitted. In case the combined amount of orders from APFs exceeds the volume of shares being offered (minus orders satisfied as top-priority), APFs' orders will be satisfied pro rata to their orders. 4. The volume of shares remaining after the distribution on orders being satisfied as top-priority and second-priority is distributed amongst Retail investors, for that part of orders which exceeds KZT7,000,000 (seven million), as follows: - In case the combined demand is less or equal to the remaining volume of shares, all third-priority orders are satisfied in full. - In case the combined demand is higher than the remaining volume of shares, orders are satisfied pro rata to volumes exceeding seven million tenge. During the distribution of shares among various groups of investors the date of order submission is not taken account of within the submission period. On December 24, 2012 settlements in the system of JSC "Kazakhstan Stock Exchange" are supposed to be completed. On December 25, 2012 opening of trading in shares of JSC "KazTransOil" is expected in the secondary securities market. JSC "KazTransOil" is a subsidiary organization of JSC "NC KazMunayGas"; it is the largest oil transportation company in Kazakhstan owning a network of oil pipelines and water pipes of a total length of about 8 thousand km. JSC "KazTransOil" transports around 59% of the total volume of oil produced in the country abroad and to domestic consumers. Not for public distribution or publication, directly or indirectly, on the territory of USA, Australia, European economic zone, Canada, Russian Federation or Japan. Press-service of JSC "KazTransOil" tel.: +7 (7172) 555 135 [2012-12-06]