Astana International Exchange (“AIX”, “Exchange”) has launched a new Regional Equity Market Segment (REMS), aiming to give Kazakh and Central Asian region medium-sized companies better access to public equity finance.
AIX and AFSA have simplified the regulatory regime for REMS companies with a free-float market capitalization not exceeding USD200 million. The adopted changes allow REMS issuers to produce a simplified prospectus based on one-year financials, with no requirement to demonstrate revenue earning track record. Due date for publication of the first annual report by a REMS listed issuer is extended by additional two months. Minimum free float level for REMS companies has been reduced to 15 per cent of share capital. REM Rules are available at https://www.aix.kz/rules-regulations-2/rules-regulations/ .
CEO of AIX, Tim Bennett, noted:
“AIX has long recognised the importance of small and medium-sized businesses for boosting capital markets in Kazakhstan and Central Asian region. To support ecosystem for Kazakh and regional businesses to raise capital, AIX has established a dedicated Regional Equity Market Segment that better suited for smaller companies and their potential investors. Apart from the reduced administrative burden for the prospective issuers, we are confident that REMS will foster a greater interest from foreign and regional investors to ensure a dynamic and more liquid marketplace.”
Additionally, a set of general amendments to AIX Business Rules has been introduced. The amendments simplify the regulation for issuers with securities traded on an equivalent regulated exchange, as well as enhance the Rules in terms of better clarity, provision of a more detailed approach, and practicality of regulation for all issuers and market participants.
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 common 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
AIFC. Astana International Financial Center (AIFC) was established on the initiative of Nursultan Nazarbayev, the First President of the Republic of Kazakhstan. The constitutional law establishing AIFC was signed on December 7, 2015. The aim of AIFC is to form a leading center of international financial services. The objectives of AIFC are to assist in attracting investments into the country’s economy, create an attractive environment for investment in financial services, develop the securities market of the Republic of Kazakhstan and ensure its integration with international capital markets. www.aifc.kz