AIX has approved the rules for Direct Listing

08 December

Astana International Exchange (“AIX”, “Exchange”) is pleased to introduce a new service – Direct Listing of shares. The relevant amendments in the AIX Business Rules have been approved by the Astana Financial Services Authority (AFSA) with a commencement date of 20 December 2021.

A Direct Listing is a process for a company to become public without raising capital through the conventional initial public offering process (IPO). Unlike an IPO in which the shares would typically be sold to prospective investors at discount via bookbulding process, in the direct listing the initial sales are conducted by the selling shareholders through the Exchange, with the prices determined based on matching buy and sell orders in accordance with the AIX Trading Rules. For the purpose of the direct listing, AIX allows issuers to have zero free float on the Admission Date and to meet these requirements over a 1-year period.

Evgenia Bogdanova, Head of Regulation & Compliance of AIX said:

“Direct listing provides companies more options for becoming publicly traded. By going public the company allows existing shareholders to freely sell their shares in the public market. Besides, in the direct listing there is no need for traditional underwriter involvement and bookbuilding which decreases the time and cost of the listing. We believe that allowing for multiple pathways for private companies to achieve exchange listing would encourage more companies to participate in public equity markets and provide investors with a broader array of attractive investment opportunities.”

The Rules are accessible via the following link.

Reference:

AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, Goldman Sachs, the Shanghai stock exchange, the Silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. More details:www.aix.kz

The Astana International Financial Centre was established on the initiative of the First President of the Republic of Kazakhstan – Elbasy Nursultan Nazarbayev as part of the National Plan “100 steps to implement five institutional reforms”. On July 2, 2020, as part of the meeting of the AIFC Management Council, the Center’s Development Strategy was adopted until 2025. According to it, the vision of the AIFC is to become a leading international financial centre in the region, including Central Asia, the Caucasus, the EAEU countries, Western China, Mongolia and Eastern Europe.
The mission of AIFC is to promote the sustainable long-term development of the region. As the Head of State noted, K.Tokayev, “The AIFC with its unique capabilities can act as a universal platform connecting the countries of the region.” https://aifc.kz/